Parents who stopped receiving Child Benefit payments before 7 January 2013 do not need to take any action. However, parents who did not stop their payments until after 7 January, or who are continuing to receive Child Benefit, and with income over £50,000, must register for Self Assessment for the 2012-13 tax year by October 5, which will enable them to declare the Child Benefit received, pay the tax charge on time and avoid penalties for failure to notify HMRC on time.
This month the department has been sending letters to around two million higher rate taxpayers, including those affected by recent changes to Child Benefit. These are aimed at reminding them they must declare any additional income or register now for Self Assessment, if they have not already done so.
Those who did not receive any payments relating to the period after 7 January do not need to register for Self Assessment. However, people who fail to register could face a penalty of up to 100 per cent of the tax due, depending on the circumstances.
They might be able to come out of Self Assessment in future years if they, or their partner if they are the Child Benefit recipient, choose to opt out of receiving Child Benefit and avoid incurring the tax charge.
Apparently, over 400,000 people with higher incomes have already opted out of receiving Child Benefit payments and parents who want to do so should visit HMRC’s website or speak to their financial adviser.
For more information, speak to Glazers, Chartered Accountants in London or visit www.glazers.co.uk
[ add comment ] ( 6 views ) | permalink |
( 3 / 532 )
Random Entry
