Recent figures suggest that only 200,000 people out of a possible 1.2 million have opted out of receiving child benefit ahead of the deadline today.
Whilst slightly above the level expected by the Treasury, this figure leaves around one million people exposed to the new ‘high income child benefit charge’.
If you or your partner receives child benefit and either of you has a ‘net adjusted income’ over £50,000 a year, you will have to pay back some or all of any child benefit through this high income child benefit charge, unless you opt out of receiving the child benefit in the first place.
Child benefit is recovered on a sliding scale if you have net adjusted income between £50,000 and £60,000.
If you have a net adjusted income income of £60,000 or more, the high income child benefit charge will remove the entire value of the child benefit you receive.
Net adjusted income for this purpose is your gross income (before tax) less pension contributions, child care vouchers, and gift aid donations.
The high income child benefit charge will be assessed and collected through the Self Assessment system.
You will need to register with HM Revenue & Customs by 7th October 2013 if you have not opted out of receiving child benefit and one of the earners in your household earns more than £50,000.
If you need to opt out of receiving child benefit, HMRC offers an online form at www.hmrc.gov.uk/childbenefitcharge/stopchbpayments.htm.
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