High Income Child Benefit Charges
There have been some changes to child benefit which could mean some people may have to pay tax on child benefit in the year ended April 2013. This will be the case if:
– There is an individual income of more than £50,000 and entitlement to receive Child Benefit
– There is an individual income of more than £50,000 and you live (or have lived) with a partner who is entitled to receive Child Benefit
– Both you and your partner have an income of more than £50,000 per year, you have the higher income and one of you is entitled to receive Child Benefit
The amount of the tax charge is based on the amount of Child Benefit entitlement and the level of what is known as ‘adjusted net income’. Therefore, in order to keep receiving Child Benefit payments you will need to declare the amount you or your partner are entitled to by filling in a tax return each year and registering for Self-Assessment, if you haven’t done so already.