If you have income above £50,000 per annum and received Child Benefit beyond January 2013 then you must register for Self Assessment prior to October 5 2013 in order to avoid High Income Child Benefit Charge penalties. If you have a partner and either of you exceeded £50,000 then the liability to register for self assessment rests with the higher earning partner.
HM Revenue and Customs will shortly be writing to almost two million higher rate taxpayers, including those affected by recent changes to Child Benefit.
Over 390,000 taxpayers with higher incomes have already opted out of receiving Child Benefit as a result of this new regulation.
The High Income Child Benefit Charge came into effect on January 7 2013, with taxpayers liable to pay tax if the following statements apply, or applied in the 2012/13 tax year:
- you have an individual income of over £50,000 a year, and
- either you or your partner received any Child Benefit payments beyond January 7 2013, and
- your income for the tax year is higher than your partner’s. The partner with the higher income is liable to pay the charge if both partners have income over £50,000.
If you think that you may be affected by this then we would be pleased to assist.