Important information for parents – new child benefit income tax charge – effective from January 2013

This could affect you if you or your partner receive child benefit on or after 7th January 2013 and if one of you have income above £50,000. HMRC will write to all taxpayers potentially affected by this change this autumn with guidance on what options will be available and what needs to be done at that time. If you are liable to pay the charge, HMRC will send you a tax return to complete during April 2013. For example a higher-earning family with three children could be worse off financially under the new rules. It is possible to opt out of receiving the child benefit but this has implications for those in receipt of National Insurance credits who care for a child at home under the age of 12 which can affect state retirement pensions. Contact us for timely advice on this issue.