January 7 2013 struck a blow for parents who are struggling under financial burdens – the Higher Income Benefit Charge, or the Clawback as we call it, came into effect. This is a back door tax that charges individuals who live in a household where Child Benefit is received and an individual earns over £50,000. For full details please click here.
If you did not opt out of receiving Child Benefit payments and either you or your partner earn over £50,000, then you have until 5 October 2013 to register for self assessment or you risk incurring a penalty. It is the partner who earns over £50,000 who is liable for the charge, regardless of whether they are the ones who receive the payment. If both partners earn more than £50,000 then it is the higher earner who is liable.
If the above applies to you then you need to register for self assessment today, or ask us to do it on your behalf. Please contact Peter Horn by email, or phone him on 01923 224411 if you would like further information or advice.