If you or your spouse/partner claims child benefit and at least one of you has adjusted net income of £50,000 or more p.a. then the highest earner needs to declare the benefit on their tax return so that it can be paid back as a tax charge.
HM Revenue and Customs is now writing to taxpayers who it thinks should have paid the child benefit tax charge for 2013/14, but didn’t. Unfortunately some of these people who have received letters haven’t claimed child benefit for decades, and some are even childless!
In the event that you receive a letter by mistake, please don’t ignore it as HMRC will alter your tax return to collect the tax it thinks is due. You have 30 days to actively reject any incorrect alteration to your assessment, and we can help you do this.
If you do earn over £50,000 and want to keep your child benefit for 2014/15 there are a number things you can do, including making additional Gift Aid donations and extra contributions into your pension.
If you’d like to discuss your options with us, just get in touch on 01782 279615.