HMRC is expecting to levy ‘child benefit tax penalties’ to thousands of households where at least one taxpayer has income in excess £50,000 yet the family is still in receipt of child benefit.
From 7 January 2013, Chancellor Osborne scrapped child benefit for those earning in excess of £60,000 with those earning between £50k & £60k receiving only a proportion of the benefit, calculated on a sliding scale.
Taxpayers who are ineligible for the full amount are required to notify HMRC by 5 October for child benefit received in the 2012/13 tax year. Details of the over-claimed child benefit should be included on a self assessment tax return for this period, with paper submissions to be made by midnight on 31 October 2013. Online submissions should be made by 31 January 2014.
We can talk you through your obligations in this area and advise you on other aspects of personal tax to ensure you stay off HMRC’s radar. Contact [email protected] for a confidential discussion.