News: 2nd January 2013

HM Revenue and Customs (HMRC) has reminded high-earning Child Benefit recipients that they have until January 6th to decide on whether they keep receiving the benefit.

The government will be introducing a High Income Child Benefit Charge on January 7th that applies when a taxpayer or their partner has an income of more than £50,000 in a tax year.

Indeed, those earning between £50,000 and £60,000 will face a tax charge that gradually increases to 100 per cent of the Child Benefit at £60,000.

Lin Homer, HMRC's Chief Executive, said: "Over 155,000 people have already decided to stop receiving Child Benefit.

"There is easy to use information and a calculator on our website which will help families come to a decision."

It comes as the deadline for any outstanding online 2011-12 Self Assessment tax return submissions approaches, with those who are yet to file their details having until January 31st to do so.

Posted by Emily Smith