Child Benefit Changes 2013

sterlingsafeguarder

My son, who is a higher rate tax payer and currently earns in excess of £60,000, will be subject to an income tax charge in the tax year 2012/13. If his wife continues to receive child benefit for their two children, then from the 7th Jan 2013 to 5th April 2013 the taxman will charge him £422.64. In a full year this would be £1,753.
Does he have to pay this extra charge as a lump sum or will the Inland Revenue claw it back on a monthly basis through a change to his tax code?
I'd be interested to hear from anyone in a similar position to his.

EvieSaver

Hi, I'd also like to know the answer to your question. I did see one article which mentioned that it would be paid as a lump sum but not sure how reliable that is as when I rang the tax office they didn't know either - although this was about a month ago.

I've seen it mentioned that people affected by this will receive a letter this Autumn explaining things, our problem is my husband hasn't earned over the £50k before and only will this year if he gets a bonus so we might not even get a letter.

InsertWittyName

I'm in the same boat.

As far as I am aware there are options for how it is 'repaid' based on if you want to receive the CB or not.

Some of the info I've read is:

• It can be coded out in your tax code.
• You'll have to complete self assessment (which I do already) so will be payable then as any due tax is normally taken.

xylophone

http://www.thisismoney.co.uk/money/news/article-2213947/Child-benefit-cuts-hit-couples-3-000-tax-bill.html
might be worth a look?