Child benefits

Child benefit. Did you miss the deadline?

Posted on January 14th, by admin in Child benefits, News. Comments Off

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 »