If you or your partner are earning more than £50,000 per annum and are also claiming child benefit, you must file a self-assessment tax return by 31 January……or face a £100 fine.
I haven’t done this before, so what’s changed?
Changes were made to child benefits last January. Households where one parent earns more than £60,000 per annum lose all their child benefit. If one parent earns more than £50,000, but less than £60,000, the household loses part of the benefit.
Therefore, if you claimed child benefits and earned more than £50,000 in the year to 5 April 2013, you must either have already opted out of receiving the benefit, or you must file a Self-Assessment Tax Return by 31 January 2014. You’ll also need to pay back any child benefit claimed between 7 January and 5 April 2013.
If you don’t, you’ll be fined £100.
That’s me – what do I do next?
Last year, HMRC wrote to over 2 million people who might be affected. This week, they’ve estimated that around 105,000 people still haven’t registered or opted out, so are headed for a fine.
If this includes you, the first step is to register for Self-Assessment. You can do this here or by ringing the Self-Assessment helpline on 0300 200 3310.
For more information, you can watch this video from HMRC.
If you would like to arrange a free meeting with a Liverpool accountant to discuss personal tax, either at our office or at your premises, please contact us on 0151 724 3960 or by email at [email protected].
Alternatively, you can use our website contact form.
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Added by Jon Davies