Receive Child Benefit? Register For Self Assessment Now

An estimated 500,000 High Income Child Benefit Charge (HICBC) payers need to register for self-assessment before 5 October 2013, or they face penalty charges.

The HICBC is effectively a back-door tax that charges people who meet specific criteria for claiming child benefit. The charge is paid by the taxpayer through self assessment, requiring an estimated 500,000 additional people to sign up for self assessment if all of the following conditions applied to them for the 2012/2013 tax year:

  • their income is £50,000 or more, and
  • either they or their partner received child benefit after 7 January 2013, and
  • their income is higher than that of their partners if both earn over £50,000.

It is the partner that has the higher income who will pay the charge, if both earn over £50,000. If you decided to opt out of claiming Child Benefit payments before 7 January 2013 then you do not need to take any further action.

HMRC will not be able to easily identify you, so it is your responsibility to register for self assessment and pay the charge.

A more in-depth summary of the HICBC can be viewed here.

If you are unclear as to whether the charge applies to you, or you would like further help or advice, then please contact Peter Horn immediately by email at peter.horn@myersclark.co.uk, or phone him on 01923 224411.