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Our October survey says...
Wednesday 31st October, 2012
Posted by Kerry Hull
We asked our web visitors if they were aware of the proposed tax changes for those on higher incomes that are in receipt of Child Benefit and a staggering 93% are not!
To give a little background, this year's Budget imposes a new charge on a taxpayer who has adjusted net income over £50,000 in a tax year, where either they, or their partner, is in receipt of Child Benefit for the year.
This will have effect from 7 January 2013. If both partners have adjusted net income over £50,000, the partner with the higher income is liable for the charge.
HMRC will write to all taxpayers potentially affected by this change from 1st November 2012, you can
download a copy of the letter here
. It is accompanied by a flow chart which helps the taxpayer to identify if they are in fact affected by the change and if so what options are available and what needs to be done, you can
download a copy of the flowchart here
If you are liable to pay the charge and you are not already making a Tax Return each year, HMRC should send you a Return to complete during April 2013.
Unless you already pay tax under the Self Assessment system, the earliest that you will have to pay the amount due on the Child Benefit for the 2012/13 tax year will be during the 2013/14 tax year which begins on 6 April 2013.
If you receive a letter from HMRC about the taxation of Child Benefit and you are unsure of how it affects you and your need to make a Tax Return, our Personal Tax team are on hand to help with any questions you may have.
A staggering 93% of contractors asked were not aware of the proposed tax changes for those on higher incomes that are in receipt of Child Benefit.
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