3rd September 2013
HMRC is to start a campaign in order to raise awareness of the ‘High Income Child Benefit Charge (HICBC)’. It is estimated that around 500,000 taxpayers may need to complete a self assessment (SA) tax return for the first time in order to declare that they have a HICBC.
Whether you are in agreement or not, HMRC has been asked to administer the collection of the HICBC and in doing so, has put thousands more people into SA. What is all the fuss about? Parents on higher incomes who have continued to receive child benefit after 7 January 2013 will need to ensure that they register for SA by no later than 5 October 2013 to avoid any penalties for ‘failure to notify chargeability to tax’. Therein lies the problem – have people been adequately informed of their responsibilities to approach HMRC and register for SA? Will penalties be imposed on those individuals with no interest in the tax system or will people just ‘get away with it’? More interestingly, are HMRC easily able to identify them? The latest campaign to raise awareness suggests not.
Read the full blog: Child Benefit Tax Charge