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bigduckontax
bigduckontax, Accountant
Category: Tax
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Experience:  FCCA FCMA CGMA ACIS
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Dear Tax advisors, I have received a letter from HMRC regarding

Customer Question

Dear Tax advisors,
I have received a letter from HMRC regarding the child benefit charge. Can I confirm that they are currently seeking tax for the year ending April 2013? I am receiving child benefit but my salary total for that tax year is under £50,000 and clearly stated on my p60. My salary by end of April 2014 will be just over £50000 and I would have been planning to fill in a self assessment form later this year. When I try to use their website for help. It asks if I am earning £50000 or more. I don't know whether to fill in yes or no as it doesn't state for which tax year. I am willing to pay what I should but totally confused and haven't slept properly since receiving this letter as I do not wish to be fined but don't want to fill in an assessment form if I don't have too.
Many thanks for any advice you can give,
Barbara
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.

Hello Bartbara, I'm Keith and happy to help you with your question.

 

You do not get Child Tax Credit if your income is over 40K.

 

The year would appear to be an irrelevant for your on line data entry as you are way over the maximum. You should just enter 'Yes.'

 

Don't worry about a self assessment form. It is not due until the end of the tax year and in any event it is your responsibility to self assess if you have significant un-taxed income or adjustments even if HMRC don't send you a form. Don't get yourself into a fret, you are in the very early stages of any problem and most are easily and amicably resolved.

 

Try using HMRC web site 'High Income Child Benefit Charge.' Any search engine will find it. It gives the links to a variety of calculations.

Customer: replied 3 years ago.

Dear XXXXX,


Thank you for your answer but I am still confused.


I do not receive child tax credit. I am, I believe entitled to receive child benefit if I earn less than £50,000. The government changed its legislation in January 2013 so that if you earn £50,000 or more you may still claim child benefit but also need to fill in a self assessment form. What I need to know is if I was earning less than £50,000 during the tax year ending 2013 do I need to fill in the form?

Expert:  bigduckontax replied 3 years ago.
Barbara

As you will find dealing with the Tax Credit Office (TCO) can be a nightmare, I did! Child Benefit and Child Tax Credits intertwine extensively. The reason for the requirement to complete a self assessment is to enable the claw back of child benefit (High Income Child Benefit Charge) for high earners to be calculated. If you are below the 50K limit then you probably will not have to self assess, but HMRC may still require you so to do. Also please remember that if there is the slightest possibility that not everything has been declared it is your responsibility to self assess irrespective of HMRC.

Keith
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3389
Experience: FCCA FCMA CGMA ACIS
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 3 years ago.
Thank you for your support.

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