Reminder to those with child benefit and higher incomes
HMRC are reminding people with income over £60,000 whose family is still receiving Child Benefit to consider 'opting out' before 28 March if they wish to avoid filling in a tax return and repaying the benefit for the 2013/14 tax year.
According to HMRC's latest figures over 370,000 people have opted out of Child Benefit since the High Income Child Benefit Charge was introduced on 7 January 2013.
Those with income over £60,000 that continued to receive Child Benefit from 7 January 2013 onwards that do not already receive a self assessment return need to register for self assessment by 5 October 2013. This action is necessary so they can repay the child benefit received between January and April 2013.
However opting out before 28 March will mean they will not need to fill in a tax return in future years.
Lin Homer, Chief Executive at HMRC, said:
'Anyone wanting to opt out of Child Benefit payments can do so at any time. It is really easy – just go to our website. Anyone with an income over £60,000 who has received Child Benefit since January needs to register for self assessment by 5 October to repay some or all of this year's benefit, but if they opt out now this will be a one-off.'
For those with income of more than £60,000, the tax charge is 100% of the amount of Child Benefit. For income between £50,000 and £60,000, the charge is gradually increased to 100% of the Child Benefit.
The decision to stay in or opt out of receiving Child Benefit payments is not final, and families are free to change their minds. Anyone earning over £50,000 who has received Child Benefit since 7 January 2013 will need to register for self assessment if they do not currently receive a tax return and complete a tax return for that period, regardless of whether they are now opting out.
Please do get in touch if you have concerns in this area.
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