Most people will now be aware that higher earning parents will be entitled to less child benefit from today, but it seems that rather a large number of parents are unaware that this will draw them into completing Self-Assessment tax returns.
HMRC estimates that there are around 700,000 households with one parent earning over £60,000. HMRC wrote to higher earning child benefit recipients giving them a deadline of 6th January to opt out of receiving child benefit or pay the Higher Income Child Benefit Charge (HICBC) where one parent earns over £50,000. From today where a parent continues to receive child benefit it will be repayable as HICBC at a rate of 1% of child benefit paid for every £100 of income over £50,000.
Around 200,000 taxpayers took the opt-out and will no longer be paid child benefit. The remaining 500,000 will … Read More »