The ‘high income’ Child Benefit charge is set to come into effect from 7th January 2013 and the Government estimate that it will impact on 1.2 million families. You may have received a letter from HMRC regarding this.
To help you to decide if this affects you, please http://www.torrwaterfield.co.uk/briefings/briefing-child-benefit to read our briefing which provides a clear and concise summary of what you need to know about the impending Child Benefit charge. It highlights some of the practical problems to be considered in deciding whether the charge applies, and on whom it falls, as well as identifying what action could or needs to be taken.
Please note that this does not affect your 2012 self assessment tax return, but when your 2013 tax return is completed (next year) your accountant will be asking about details of the Child Benefit that you have received during the period from 7 January 2013 to 5 April 2013, as you may be required to pay this back unless you have elected not to receive it.
Please be aware that the Child Benefit charge is completely separate to the Child Tax Credit which is administered by a separate HMRC system and is not reportable on your self assessment tax return.