03.10.13 220,000 Face HMRC Penalty over High Income Child Benefit Charge

Will the High Income Child Benefit Charge affect you?

The High Income Child Benefit Charge (HICBC) will affect individuals who;

• Have an income of more than £50,000 and are entitled to receive Child Benefit
• Have an income of more than £50,000 and live, or have lived, with a partner who is entitled to receive Child Benefit
• Live with a partner and either they or their partner have an income of more than £50,000 per year and either  is entitled to receive Child Benefit

Those subject to the HICBC had the choice of either ceasing their claim to Child Benefit or declaring the amount of Child Benefit received by completing a tax return each year and registering for Self-Assessment.

HMRC claim that an estimated 220,000 of 1.1 million affected parents still have yet to register to fill out the self-assessment forms although they have continued with their claim to Child Benefit. If they fail to register by 5th October 2013 they may be faced with a penalty to pay, equivalent to the amount of tax that they will owe (although HMRC seem to be playing this down with a statement that only those evading tax will receive the full penalty and, if tax due is paid by the end of January 2014, there will not be any penalty raised).

Click here to register for Self-Assessment
https://online.hmrc.gov.uk/shortforms/form/SA1?dept-name=&sub-dept-name=&location=43&origin=http://www.hmrc.gov.uk

See Aspire’s previous articles and blogs on this subject;

09.11.12 Child Benefit Reform
http://www.aspirepartnership.co.uk/News/2233/181010-reputational-risk-provides-impetus-for-improved-procurement-policy55

10.11.12 Michael Gauke hints at more change to come
http://www.aspirepartnership.co.uk/News/2233/181010-reputational-risk-provides-impetus-for-improved-procurement-policy56

02.01.12 Child Benefit Reform Blog
http://www.aspirepartnership.co.uk/Blog_Detail.aspx?hid=6&nid=174

01.09.12 Child Benefit Reform Blog
http://www.aspirepartnership.co.uk/Blog_Detail.aspx?hid=6&nid=154