Child benefit changes
It is now too late, at least for the current tax year, to opt out of receiving child benefit.
Individuals that (or who have a partner that) claim child benefit and have an income over £50,000 will, therefore, need to register for self assessment for 2012/13.
If you opt out after 7 January you will still have a 2012/13 high income child benefit charge based on the child benefit received after that date. The charge equals 1% of the child benefit paid for every £100 of income between £50,000 and £60,000. Those who continue to receive child benefit will have to repay some or all of it at a later date.
Just bear in mind that you do not have to opt out. You will not be any worse off in cash terms.
If you are in the borderline between £50,000 and £60,000 you should consider if there is anything you can do to reduce your taxable income, e.g. gift aid payments or pension contributions.
Date: 8th January, 2013
Articles from this Author
Contact Business Service Partners
Choose from the drop down menu below to select a Partner to contact.
Business News from Mercer & Hole Accountants - Considering outsourcing your financial functions? Read on... mailchi.mp/stalbans-chamb…
For the latest Mercer & Hole news, visit our LinkedIn page mercer-&-hole