8th October 2013
High Income Child Benefit Charge
Filed Under: Tax
The government have long said that they would like to reduce the administrative burden and complexity of the tax system. It is hard to believe that we are truly going to achieve such a goal when things like the High Income Child Benefit Charge (“HICBC”) are introduced, estimated to bring an extra 600,000+ individuals within the self-assessment tax system.
From 7 January 2013 a new tax charge was introduced for most individuals with income of over £50,000 that are claiming child benefit. To make matters worse the tax charge also applies to individuals with income of over £50,000 where their partner is in receipt of child benefit. I can imagine the difficultly this could bring in the case of couples going through relationship difficulties where the subject of money could be a tricky matter!
Anyone that will be subject to the HICBC that hasn’t voluntarily elected not to receive their Child Benefit should have registered for self-assessment by 5 October 2013. Anyone that has missed the deadline should register for self-assessment as soon as possible in order to reduce the risk of penalties.Dan Hobbs firstname.lastname@example.org 01903 300230
If you liked this post please share it: