Christmas can be an expensive time with many additional costs. A further cost is in store for anyone who has income over £50,000 in a tax year and either they or their partner currently receives child benefit. As from 7 January 2013, the new child benefit income tax charge will be introduced with its own set of rules as to how it will be calculated and how it will be applied. As a result of this new tax charge, the Revenue estimates that 500,000 people will have to complete a tax return for the first time in April next year.
The tax charge applies to anyone in receipt of child benefit with income in excess of £50,000.
HMRC has indicated that they will soon be contacting all those liable to pay the charge to explain what needs to be done and what options are available, depending on your circumstances. Anyone who thinks they may be liable to the child benefit income tax charge and does not receive any communication from the Revenue, should contact their tax office to advise them. If you don’t already complete a self-assessment tax return each year, then this should prompt HMRC to send you one for 2012/13. If you, your partner or a family member need help to complete your tax return please do not hesitate to contact us.
Please click here to read our full article on this subject including the below points:
- What is Child Benefit?
- Will I still be eligible?
- Tax Confidentiality Laws
- Business Partnerships and Child Benefit
- Can I opt out and not pay the charge?
- How to pay the charge?
