High-earning families warned over child benefit opt-out deadline (From Kidderminster Shuttle)

High-earning families warned over child benefit opt-out deadline

11:10am Sunday 10th March 2013 in News

HM Revenue and Customs (HMRC) is reminding people with an income over £60,000 whose family is still receiving child benefit to opt out before March 28 if they want to avoid filling in a tax return and repaying the benefit for the 2013/14 tax year.

Latest HMRC figures show that more than 365,000 people have opted out of child benefit since the high income child benefit charge was introduced on January 7. Those who have already stopped their child benefit payments do not need to act.

People who continued to receive child benefit after January need to register for self assessment by October 5 this year to repay the benefit received between January and April this year but opting out now means they will not need to fill in a tax return in future years.

Lin Homer, chief executive at HMRC, said: "Anyone wanting to opt out of child benefit payments can do so at any time. It is really easy - just go to our website.

“Anyone with an income over £60,000 who has received child benefit since January needs to register for self assessment by October 5 to repay some or all of this year’s benefit but if they opt out now this will be a one-off.”

For people with income of more than £60,000, the tax charge is 100 per cent of the amount of child benefit. For income between £50,000 and £60,000, the charge is gradually increased to 100 per cent of the child benefit.

The decision to stay in or opt out of receiving child benefit payments is not final and families are free to change their minds. Anyone earning over £50,000 who has received child benefit since January 7 this year will need to register for self assessment and complete a tax return for that period, regardless of whether they are now opting out.

For more information go to hmrc.gov.uk/childbenefitcharge