High Income Child Benefit Charge

You may be liable to the High Income Child Benefit Charge if you OR your partner have an individual income of more than £50,000 and one of you receives Child Benefit. The charge is payable to HMRC as part of your personal income tax liability.

If this applies to you and you have received Child Benefit since 7 January 2013, you must register for Self-Assessment before 5 October 2013. Failure to register before this date may result in penalty charges from HMRC. HMRC defines a partner as:

• A person you are married to and living with – or have lived with during a tax year – and not permanently separated from
• A civil partner you are living with – or have lived with during a tax year – and not permanently separated from
• A person you are living with – or have lived with during a tax year- as if you are married or a civil partner.

You will also be affected if during a tax year you have an individual income of more than £50,000 and both of the following apply:

• someone else is entitled to receive Child Benefit for a child who lives with you
• they're entitled because they contribute at least an equivalent amount of Child Benefit towards the child's upkeep, for example pocket money or clothes.

It doesn't matter if the child that is living with you is not your own child.

If you would like to discuss ways to reduce your exposure to the High Income Child Benefit or need help to register for Self- Assessment or completing your tax return please contact us:

Email: Info@BBCA.co.uk

Tel:      0131-2282493