HMRC have recently been sending individuals letters, stating that they believe the High Income Child Benefit Charge has not been declared on their 2012/13 tax returns.
In the event you receive a communication from HMRC that you believe to be incorrect, don’t ignore it. You should contact HMRC for clarification or ask your accountant to do this on your behalf.
It is worth highlighting that many individuals have received these letters in error though. Supposedly, HMRC’s records have ignored if:
- no child benefit was actually received in 2012/13
- the highest earner has already paid the HICBC
- the taxpayer’s 'adjusted net income' is less than £50,000. Actual income can be reduced for trading losses, gift aid donations and pension contributions to arrive at 'adjusted net income'.
Contact your local TaxAssist Accountant if you’d like them review the letter against your affairs or if you’d like them to liaise with HMRC on your behalf.
By Jo Nockels
Disclaimer: Advice shared in this blog is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this forum, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.