An estimated 1.2 million families could be hit by the Government’s new rules on child benefit, which took effect on 6 January 2013. Before this date, a parent with one child received child benefit of £20.30 per week and £13.40 for every subsequent child. Now however, any household with a member earning over £50,000pa won’t be able to keep the full benefit, and households with a member earning over £60,000pa will lose the benefit completely.
All families affected by this who have not opted out of receiving the benefit will continue to receive the benefit but will be required to repay some or all of the benefit through a self-assessment tax return. This could mean approximately 500,000 adults having to complete a Tax Return for the first time. If more than one member of the household unit earn over the limit, the earner with the higher income will be responsible for the tax.
Walter Hunter are offering a fixed-fee service to assist with the completion of Tax Returns for households caught by this new tax charge. We can also advise on other issues relating to this change, such as P11D benefits, the possibility of using a Salary Sacrifice or making an increased contribution to a pension, National Insurance credits etc.
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