Child Benefit for Jan-Mar 2013

michaels

The new income tax on child benefit comes in from next January 2013. As far as I know the total tax liability is calculated on an annual basis with every £1 earned in each tax year resulting in a tax liability of 1% of child benefit received.

For example in 2013/14 tax year earn 55k, child benefit 2400, tax charged 1200.

Between Jan and March next year I will get about 600 child benefit. How will the tax liability be calculated,

(1)will it be on my entire income between Apr 12 and Mar 13. Eg Earn £55k, receive 600 child benefit but extra tax liability £600 or
(2) will it be prorated eg earn 55k so lose 50% of child benefit so tax = £300 or even
(3) be based solely on earnings during the Jan-March period so earn 12k Jan-Mar, is less than 50k/4=12.5k so no additional tax charge.

I can't find anything online about this.

Pepzofio

Looks like (b) -

"For the tax year 2012-13, the first year of the charge, the amount of income taken into account will be the full amount of income for 2012-13 and the amount of Child Benefit will be that paid in the period from 7 January 2013 to the end of the tax year."

Taken from http://www.hmrc.gov.uk/budget2012/cb-income-tax.htm