We are seeing an increase in the number of clients being contacted by HMRC who are subject to the High Income Child Benefit Tax Charge but have not disclosed this on their Self Assessment Tax Return. In these cases, the taxpayers are required to pay back some, or all, of the Child Benefit received, with interest applied. Penalties may also be issued.
You may be subject to the Tax Charge, if you have an individual income over £50,000 and either:
- you or your partner get Child Benefit
- someone else gets Child Benefit for a child living with you and they contribute at least an equal amount towards the child’s upkeep
You can choose not to get Child Benefit payments, but you should still fill in the Child Benefit claim form. This will help you get National Insurance credits which count towards your State Pension.
Alternatively, you can carry on getting Child Benefit and pay any tax charge at the end of each tax year. You will need to disclose the Child Benefit received on your annual Self Assessment Tax Return.
Please see https://www.gov.uk/child-benefit-tax-charge for details or contact us if you would like to discuss further.
