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:

  1. Do nothing. Keep receiving the benefit and declare this on your tax return.
  2. 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.

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