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Parents entitled to receive child benefit will remember the changes which came in to force this January, imposing a potential tax charge in relation to child benefit payments, when someone in the claimant’s household earns more than £50,000 per year.
Our newsletter dated 9 November 2012 (which is available by clicking here) gave more details on the changes, and who might be affected. Those who didn’t stop their payments until after 7 January (or who are continuing to receive child benefit), who may now have a tax liability as a result of the High Income Child Benefit Charge (HICBC), must include this on their 2012-13 tax returns. Importantly, if you haven’t required to complete tax returns in the past, and you need to report a HICBC, you must tell H M Revenue & Customs (HMRC) by 5 October 2013, to ensure that a tax return is sent to you, and to avoid any penalties.
If you’re not sure whether this applies to you, don’t worry – we can help! There’s still time to review your circumstances and get in touch with HMRC before the deadline. If you’d like to discuss this, please get in touch with your usual Springfords contact.
This is a general guide which is intended to give background information and is not a substitute for taking specific advice based on your particular circumstances.