New plans to simplify Child Benefit will see big change for some working parents
dailyrecord.co.ukParents who are liable for the high income Child Benefit charge will no longer have to register for Self-Assessment in the future in order to pay it.
Instead of submitting a tax return to HM Revenue and Customs (HMRC), working parents will be able to pay it through their tax code.In a written statement outlining the new proposal, Financial Secretary to the Treasury Victoria Atkins MP, said: “The Government wants to simplify the process for customers who become liable to the high income Child Benefit charge, particularly for those who currently need to register for Self-Assessment to pay the charge.
The Government will provide details in due course on how it will enable employed customers to pay through their tax code, without the need to register for Self-Assessment."The tax charge is triggered when one parent in a household claiming Child Benefit has taxable income of £50,000 or more.People whose income is over the threshold can get Child Benefit payments and pay any tax charge at the end of each tax year or opt out of receiving payments and not pay the tax charge.Sarah Coles, head of personal finance at Hargreaves Lansdown, described the move as a "really sensible step".
She said: "It has always been a pointlessly admin-laden approach, dragging huge numbers of people into the tyranny of the tax return."It has also come with the risk that some people aren't aware of the charge, or don't realise it's up to them to do all the legwork in order to pay it.
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