Self Assessment & Child Benefit

Self Assessment and child benefit

If you’re one of the thousands of individuals claiming benefit , and have been notified by HMRC that you are having your child benefit payments reduced because of your earnings, you will in most circumstances have to complete a self assessment return.

A self assessment return is used to declare your income and tax figures and is completed typically on line or by post each tax year. If you claim job expenses over £2500 in any one tax year it is possible that you will already have to complete a tax return to claim back a tax rebate for the expenses incurred. The tax return is used by HMRC to calculate your tax position and to indicate if you are due a tax refund UK, paid the correct amount of tax, or underpaid tax.
HMRC state that if you or your partner have earnings over £50,000 and you chose to receive child benefit, then your child benefit payments along with all of your other income and tax paid should be declared on a self assessment return.

If you have been notified that your child benefit payments will be reduced because of your earnings and you are currently not in the self assessment system you should   register with HMRC. HMRC will then contact you to tell you what to do next. It is important to adhere to the deadlines for submitting a self assessment tax return as penalties are imposed if they are late.

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