With only one month to got taxpayers with incomes of more than £50,000 are having to decide whether or not to stop receiving Child Benefit or pay a charge on it through Self Assessment.
Lin Homer, HMRC’s Chief Executive, said:
“Over 680,000 people have already looked at information on HMRC’s website that explains the changes and what steps those affected can take. It is really easy to use and will help families come to a decision.”
For taxpayers earning an income of more than £60,000, the tax charge is 100 per cent of the amount of Child Benefit. If income is between £50,000 and £60,000, the charge is gradually increased to 100 per cent of the Child Benefit, but the tax charge will always be less than the amount of Child Benefit they can receive, therefore you could lose money should you opt to stop receiving Child Benefit.
If Child Benefit recipients want to stop receiving the benefit, they should contact HMRC before 7 January.