‘Child Benefit’

Child benefit tax penalties

Thursday, October 3rd, 2013

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.

Further guidance can be found on HMRC’s website..

Act to retain your child benefit and child tax credits

Wednesday, September 4th, 2013

For those still in receipt of child benefit and/or child tax credits, you may be at risk of losing these amounts unless you correctly notify HMRC of your child’s circumstances.

Child benefit stops on the 31st August following a child’s 16th birthday unless they remain in education or training. The same applies to the child tax credit. However, the payments can only continue provided the parent has notified the Child Benefit Office and/or the Tax Credit Office at HMRC.

Failure to notify can result in a reduction in payment or the payments stopping altogether and please note that if you believe you are entitled to receive both payments, you will need to notify both offices. Notifying one office does not count as having notified both!

Here are the rules in more detail. We can help you understand them and are on hand to answer any specific queries you have in this area – contact Helen Sewell on [email protected] or call Helen on 01527 558539.

Curo Chartered Accountants

Sep 2013

Curo Chartered Accountants is based in Bromsgrove, Worcestershire..

Missed the Child Benefit ‘deadline’?

Tuesday, January 8th, 2013

Individuals with taxable income of  more than £50,000 a year will see a reduction in their entitlement to Child Benefit from 7 January 2013 under new government changes.

Those with taxable income of more than £60,000 will lose the benefit completely.

The deadline to request a stop to payments has now passed and so anyone with income in excess of £50,000 and in receipt of CB will be required to submit a self assessment tax return. Don’t panic (not anyway!) – the first tax return covering this issue will be due on 31 January 2014 (for the tax year 2012/13).

For those already in the self assessment system, a declaration of CB will need to be made in the tax return.

If you’ve not already registered for self assessment, you’ll need to complete a form SA1 before 6 October 2013. A copy of this form can be found at www.hmrc.gov.uk/sa1.

HMRC imposes fines for late filing of tax returns so it is essential that you register in time and submit your return by 31 January each year.

If you’d like to discuss your requirements, Curo’s personal tax manager Helen Sewell can be contacted at [email protected] or call Helen on 01527 558539..