The deadline to request self-assessment forms for parents affected by changes to child benefit for high earners is fast approaching, ACCA (the Association of Chartered Certified Accountants) is warning today.
Any parent who earns between £50,000 and £60,000 can elect to continue to receive child benefit but they must complete a self-assessment form and will have to repay a proportion of the benefit they receive, by way of a tax charge, at the end of the tax year.
Chas Roy-Chowdhury, ACCA head of taxation, says: “If you earn over £50,000 and continue to claim child benefit but do not complete a self-assessment form you could be liable, not only to repay part of all of the benefit claimed by way of a tax charge on the highest earner of the couple, but also interest and penalties on the tax unpaid.
“It could be an entirely innocent mistake, you may not realise that your partner earns over the threshold introduced by January’s changes and be unaware of the need to self-assess, but that is unlikely to garner any sympathy from the taxman. If you are unsure whether you are affected by this you need to discuss yours and their earnings with your partner, and in many instances it may be necessary to get advice from an ACCA qualified accountant.”
For more information on the 5 October deadline you can visit: http://www.hmrc.gov.uk/childbenefitcharge/declaringchildbenefit.htm