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.