High Income Child Benefit Charge

HMRC are urging high-income child benefit parents who have neither registered for self-assessment nor opted out of receiving child benefit to take immediate action and register for self-assessment online to enable them to send an online return by the 31 January deadline according to Harris & Co accountants Northampton.

Online registration can take up to seven working days to complete as HMRC have to send an Activation Code in the post, so sufficient time should be allowed for this process. Those who have already registered must file their return before 31 January to avoid late filing penalties . The deadline for paying any tax owed for 2012-13 also falls on 31 January.

The High Income Child Benefit Charge came into effect on 7 January 2013 and 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.