HMRC are reminding parents with higher incomes who continued to receive Child Benefit after January 2013 that they must register for Self Assessment by 5 October 2013 to avoid any penalties in relation to the High Income Child Benefit Charge.
HMRC have announced that they will be writing to approximately 2 million higher rate taxpayers over the next few weeks, including those affected by recent changes to Child Benefit. The letter reminds them that if their income is over £50,000 and they or their partner received Child Benefit in 2012/13, they will need to complete a Self Assessment tax return for the 2012/13 tax year. They must register with HMRC for Self Assessment if they have not already done so.
According to HMRC, over 390,000 people with higher incomes have already opted out of receiving Child Benefit.
HMRC’s Chief Executive, Lin Homer, said:
‘HMRC is committed to helping people pay the right amount of tax. If you have had certain changes to your income in the last year, including those affected by the changes to Child Benefit, you have until 5 October to register for Self Assessment.’
If the charge does apply, then the taxpayer must register for Self Assessment for the 2012/13 tax year by 5 October 2013, so that they can declare the Child Benefit received, and pay the tax charge on time and avoid any penalties.
If you would like any help or advice on whether or not you need to register, or whether you should opt to stop receiving Child Benefit, please do get in touch on 0161 975 6685.