Tax deadline approaches for high earning parents

By Lenore Rice

Parents who receive a salary over £50,000 and also receive Child Benefit must complete an income tax self assessment return by 5th October to avoid penalties.

The High Income Child Benefit Charge began on 7th January of this year, and is payable by any parent who earns over £50,000 and also received child benefit payments after that date. If both parents earn over £50,000 the charge will be payable by the higher earner. Anyone who meets that criteria has to register for self assessment for the 2012/13 tax year before the deadline of 5th October. Anyone who fails to declare the child benefit they received by the deadline will face a penalty.

Over 390,000 people on higher incomes in Northern Ireland and the rest of the UK have chosen not to collect Child Benefit, but letters will be going out from the HMRC to approximately 2million higher rate taxpayers to remind them of the deadline.

If you require advice about income tax, self assessment, inheritance tax, capital gains tax, or general tax planning from a tax expert in Northern Ireland, contact Wilson Nesbitt in Belfast by calling 0800 840 9288.

Or click here to read more information about various tax issues in Northern Ireland.