Any household where a parent or their partner has an individual income of more than £50,000 will see at least some of their child benefit clawed back due to the High Income Child Benefit charge.
If you have chosen to continue receiving child benefit payments then these payments will need to be declared by the highest earner, by registering for Self Assessment and filing in a tax return.
Deciding if you will be affected by the new charge can be confusing:
The definition of who is a partner needs to be considered, as well as what income counts towards the £50,000. Company cars, rental income and investment income, amongst others, may all count towards the total. However clever tax planning, including pension contributions, gift aid and childcare vouchers, may help many families avoid or reduce the tax charge.
Anyone who is unsure if they need to complete a Self Assessment tax return, or is unclear on how they should do this, should seek professional advice as there may be penalties for incorrect returns.