The Child Benefit 2012/2013 Tax Return Deadline is looming.
A change in the child benefit rules by the government is affecting parents earning over £50,000 or more.
In simple terms…
The change started from January 2013, and means if one parent earns more than £50,000 a tax charge will be imposed resulting in some tax having to be paid back to HMRC. If one parent earns more than £60,000 the benefit will normally need to be paid back in full.
Completing a Child Benefit Self Assessment tax return
The tax office need parents to declare the child benefit received from 1st January 2013 to the 5th April 2013 on a self assessment tax return. To be able to do this you need to register for self assessment. It usually takes about a week for the process to complete and you will be posted an activation code.
It is estimated that 105,000 parents are yet to register for self assessment, with the majority already registered or opted out of receiving child benefit altogether.
What happens if my tax return is late?
In the region of 105,000 parents are likely to get a £100 penalty after the 31st January deadline.
- If you haven’t submitted your tax return after three months, you will get additional daily penalties of £10 a day, up to a maximum of £900.
- Further penalties are imposed after six months totaling 5% of any income tax due or £300 (whichever is the highest amount).
- It gets worse, after 12 months another 5% is charged or £300 (whichever is the highest amount).
What do I need to fill in my tax return?
The information you will need does depend on the type of income you have. If your tax position is simple you will typically only need a P60, P11d if you receive any company benefits, and the total child benefit received in the period 1st January 2014 to the 5th April 2014.
If you have other sources of income like a private pension, or bank interest. this will all need to be entered into your tax return unless it will be incorrect.
Tony Shanks