£50k earners to face charge

LONDONDERRY households with one partner earning £50k or more will be affected by a high income Child Benefit Charge that takes effect from January 7, 2013.

Around one million letters will be issued during November to families affected by next year’s changes to Child Benefit.

For those with income of more than £60,000, the tax charge is 100 per cent of the amount of Child Benefit. If income is between £50,000 and £60,000, the charge is gradually increased to 100 per cent of the Child Benefit.

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Information on the changes and what steps those affected should take can be found at http://www.hmrc.gov.uk/childbenefitcharge.

Those affected will need to decide whether to keep receiving Child Benefit and pay the tax charge through Self Assessment, or to stop receiving Child Benefit and not pay the new charge.

If their income is less than £60,000, the tax charge will always be less than the amount of Child Benefit, and they could lose money to which they are entitled if they stop receiving Child Benefit.

For further information visit http://www.hmrc.gov.uk/childbenefitcharge.

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