Penalties loom for parents receiving Child Benefit with income over 50k

The Chartered Institute of Taxation (CIOT) are reminding parents with income over £50,000 a year for 2012/13 that they have less than one month to register for Self Assessment with HM Revenue & Customs in order to avoid a penalty.  

The High Income Child Benefit Charge (HICBC) came into effect in January this year and applies to single parents or the parent with the higher income where they or their partner received Child Benefit between 7th January and 5th April 2013.

Parents who submitted a notice to stop receiving Child Benefit payments before 7th January 2013 are not required to take any action.  Those who receive a salary of more than £50,000 who stopped receiving payments after 7th January or who are still receiving Child Benefit must still register for Self Assessment.

HMRC are sending letters to around 2 million eligble taxpayers effected by the changes and 400,000 parents on higher income have already opted out of receiving Child Benefit.

Taxpayers who are required to register but fail to do so could be liable to face a penalty of 100% of the tax due.


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