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Child Benefit - Tough Times Ahead?

CHB Is Changing And The Impact To You Can Be Quite Substantial
We Explore The Changes And The Impact.

Tough Times Ahead For Child Benefit Recipients?

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OnTax Dunfermline Accountant is reporting that taxpayers earning more than £50,000 and receiving child benefits are running out of time to opt out of the scheme or face paying a charge. OnTax Dunfermline Accountant has discovered that from January 7th, HM Revenue and Customs (HMRC) is introducing a new law that increase the tax burden on child benefit recipients earning over the threshold. We also learned that the law states that high income Child Benefit schemes are taxable if one's income is more than £50,000 in a tax year. Moreover, to balance the rich and poor in an economy, such taxes have to be made.

It was recently revealed that the charge is 100 percent for those earning more than £60,000, with a gradual increase to 100 per cent for those earning between £50,000 to £60,000. We found Lin Homer, HMRC's Chief Executive, saying that people can choose to opt out of Child Benefit if they prefer. Over 680,000 people have already looked at information on HMRC's website that explains the changes and what steps those who will be affected can take. We also discovered HM Revenue and Customs (HMRC) has reminded high-earning Child Benefit recipients that they have until January 6th to decide on whether they keep receiving the benefit. These tax issues have become the hottest news in the locality and on the internet. Millions are affected by this tax regulation.

How This May Affect You

The government is planning to introduce a high income Child Benefit plan from January 7th. It applies when a taxpayer or their partner has a total income of more than £50,000 in a tax year. OnTax Accountants expects that those earning between £50,000 and £60,000 will face a tax charge that is sure to hit their pockets hard.

We would anticipate that this tax charge is likely to increases to a 100 per cent of the Child Benefit at £60,000.

High Earners Will Be Hit Hardest By CHB Changes

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According to Lin Homer, HMRC's Chief Executive, over 155,000 people have already decided to stop receiving Child Benefit. He said that families have to think twice and make better decisions.

We do believe that the standing tax amount on child benefit funds have to be made as soon as possible to avoid a fine. After which the policies may be changed. If you think you may be affected by this change please visit HMRC's website for further info.

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