The new charge on High Income Households receiving Child Benefit
From 7 January a new tax charge is introduced for households receiving Child Benefit with at least one individual with an income of £50,000 or more. The effect of the tax charge is to cancel the receipt of the Child Benefit received from 7 January.
If this affects you, you have 2 choices:
- Do nothing. Keep receiving the benefit and declare this on your tax return.
- Tell HMRC that you no longer wish to receive the benefit and avoid the tax charge and the requirement to complete a tax return.
By doing nothing, you’ll be required to register for self assessment and file a tax return for the year to 5 April 2013. This return, although not due for filing until 31 January 2014 if filing online or 31 October, if filing a paper return.
We offer excellent rates for preparing personal tax returns. Please contact us for a free consultation and for more information and advice.