HMRC is issuing a final reminder to parents on higher incomes who opted at the beginning of the year to continue to receive child benefit that they need to register for self assessment in the next few weeks or risk incurring a penalty report Harris & Co chartered accountants Northampton who provide accountancy services and tax services to small businesses.
A letter will be going out later this month to around two million higher rate taxpayers pointing out that if their income is over £50,000 and they or their partner received child benefit in 2012/13, they will need to complete a self assessment tax return for the 2012/13 tax year.
The deadline for registering for self assessment is 5 October 2013 if taxpayers are to avoid any penalties in relation to the High Income Child Benefit Charge, which came into effect on 7 January 2013.
The charge applies to an individual with an income of over £50,000 a year who either received child benefit payments after 7 January 2013, or who has a partner who received the benefit. The partner with the higher income is liable to pay the charge if both partners have income over £50,000.
People who stopped child benefit payments before 7 January 2013 do not need to take any further action, and HMRC figures show over 390,000 people with higher incomes have already opted out of receiving child benefit.