In families where child benefit is claimed, it is important that the individual or couple receiving the child benefit keeps a close eye on their income level.
If the higher earner has income of more than £50,000, some or all of the child benefit received will need to be repaid. For many higher earners it may be simplest to register for child benefit but then elect not to receive any money. We can help you decide whether that is the best route for you.
Those in receipt of child benefit who need to repay under the high income child benefit charge (HICBC) rules have, until now, had to complete a self assessment tax return but ministers have said that in the future that will not be necessary.
Instead the money will be reclaimed via the individual’s PAYE tax code.
This may take some people out of self assessment altogether and should increase the number of people correctly paying the HICBC who had previously failed to appreciate their responsibility.
If you need help with this or any other accountancy, tax and small business issues, get in touch for a no-obligation discussion – see our Contact Us page for how to reach us.
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