08:00 Saturday 08 December 2012

Child benefit decision date looming


MORE than 2,000 high-earning households in Burton and South Derbyshire may have to pay a charge on their child benefit.

Generic Online News 2High-earning recipients in Burton and South Derbyshire have a month to decide whether to stop receiving the benefit or to pay a charge on it through self assessment.

The high income child benefit charge (HICBC) starts on January 7, and will affect taxpayers with incomes of more than £50,000.

HM Revenue and Customs (HMRC) says that 43,010 letters have been sent to households in the East Midlands, including 1,270 in South Derbyshire and 1,100 in North West Leicestershire.

West Midlands households have received 48,370 letters, with just 850 of those in Burton.

Lin Homer, HMRC’s chief executive, said: “More than 680,000 people have already looked at information on HMRC’s website which explains the changes and what steps those affected can take. It is really easy to use and will help families come to a decision.”

The new charge will apply when a tax-payer or their partner’s income is more than £50,000 in a tax year, and if they or their partner receives child benefit.

For those between £50,000 and £60,000, the charge tax charge will always be less than the amount of child benefit but gradually increases to match it at the higher amount.

They could lose money to which they are entitled if they opt to stop receiving child benefit If income is more than £60,000, the tax charge is the same as the amount of child benefit.

Further information is available by visiting www.hmrc.gov.uk/childbenefitcharge

< Back
Reddit Facebook Digg Del.icio.us Twitter Bebo

Latest News

Latest Sport

Today's Features