27th November 2012
In the furore about the ‘granny tax’ and offshore companies owning property, the ‘reform’ of Child Benefit seems to have sneaked under the radar. The government initially raised this issue at the Conservative Party conference in 2011 and there was an outcry. It was unfair, complex and just not on!
Things then went extremely quiet until Budget 2012 and, as part of the reforms to the welfare system it was confirmed that Child Benefit will be withdrawn from households that include certain higher earners.
Although the change applies from January 2013 the calculation to decide whether or not a household is affected by the reform includes the full income for 2012/13. So those households that include higher earners need to be aware of the rules now so they can plan to ensure they don’t miss out unnecessarily...