Understanding the basics behind Child Benefits is essential, this is especially important for the high income household. If you're individual income exceeds that of £50,000 and you decide to continue claiming Child Benefit payments, you must declare these benefits via a Self-Assessment.
It is important to note that if your income is higher than your partners you must declare it via a Self-Assessment and the reverse is true if your partner's income exceeded that of £50,000 but was still greater than yours. It is then their responsibility to declare the child benefits received.
To register for Self-Assessment you must visit the HMRC website and complete the SA1 online form. Your tax record will then be set up and you will be given a Unique Tax Payer Reference number. HMRC's paperless online Self-Assessment strategy makes filling in your tax return a much simpler and convenient process.
If you already fill in Self-Assessment tax returns, than it is essential you declare any Child Benefits if you or a partner's household income is over £50,000. If your taxes are carried out on your behalf by a third party such as an accountant or tax agent then you must inform them about any relevant Child Benefits. More information on how to declare high income Child Benefits can be found here.
Remember, high penalties can incur if you miss your tax Self-Assessment deadlines. More information on these penalties can be found here.