Tax return deadline approaching for child benefit claimants
Business News 15 Jan 2014
Parents who are higher earners and whose families claim child benefit are being urged to complete their self assessment tax returns and submit them to HM Revenue & Customs (HMRC) by the 31 January deadline, or face a series of penalties.
Under the new child benefit rules, households in which one parent has taxable income of more than £50,000 and the family receives child benefit payments are now liable to pay a tax charge, and the higher earner must register for self assessment.
However, despite the looming deadline, thousands of individuals have still not registered with HMRC.
Failure to file the tax return by the deadline will result in an automatic £100 penalty, followed by additional penalties for further failure to file the return.
HMRC is advising taxpayers to take action now, as the process of registration can take more than a week to complete.