It is estimated that approximately 120,000 parents will be faced with £100 fines from HM Revenue and Customs for failing to submit a Tax Return by 31 January 2014 deadline.
The introduction of the “High Income Child Benefit Tax Charge” is forcing approximately 500,000 parents to fill out a Self Assessment Tax Return for the first time. The process involves the tax payer having to register online for a secure password which is sent through the post. This can take up to ten working days. It is therefore feared that people leaving it to the last minute will be faced with the automatic £100 late filing penalty. HM Revenue and Customs estimated that nearly a quarter of those affected by the new tax charge have yet to register. Further penalties could be applied and could reach £1,600 for those who file their Return up to a year late.
Under the rules introduced last January families where one adult earns more than £50,000 must repay part of the child benefit received for the weeks between 7 January 2013 and 5 April 2013 whereas those who have earned more than £60,000 will have to repay it all.
HM Revenue and Customs say they have been contacting families to warn them of the impending deadline but fear that many will not act in time.
If you think that you may be one of the families affected by this then please do not hesitate to contact us for further advice on 01234 301000.
Figures taken from The Sunday Times 22.12.13
