Child Benefit Changes

December 19th, 2012

paul-brides

Paul Brides discusses changes to Child Benefit rules, due to come in to effect on 7th January 2013.

Child Benefit is currently a tax free payment made available to married couples, civil partnerships and single partnerships as well as certain other eligible adults, regardless of the amount of their annual income.

Parents can claim for Child Benefit between the child’s date of birth and their 16th birthday (or 20th birthday when still in full-time ‘non-advanced’ education or ‘approved’ training). The current weekly rates are £20.30 for the eldest child and £13.50 per week for other children.

The changes to the rules mean that if a member of the household receives more than £50,000 annual income they will then lose some or all of their eligibility to Child Benefit. Here’s a short summary of how the changes will work:

These changes are likely to result in more taxpayers having to complete Self Assessment tax returns each year.

There is also an option to not receive Child Benefit for those who do not wish to pay the new income tax charge, although these people are urged to continue to make claims for any new children even though they will not receive any Child Benefit payments for them. This is because for each week of entitlement to Child Benefit, individuals could qualify for National Insurance credits which could help protect future entitlement to State Pension.

For more information contact Group Tax Compliance Manager PAUL BRIDES on 0161 703 2500 or e-mail paul.brides@championgroup.co.uk


BACK TO NEWS PAGE »
Latest News

Champion Accountants appointed by Blackp...

June 1st 2021

A Blackpool-based accountancy and auditing practice has been appointed by Blackpool Football Club. ...

What’s driving the boom in new propert...

May 31st 2021

Changes in the way buy-to-let landlords are taxed on their numerous properties have led to a rise in...

Focus
management accounts

Xero | Making Tax Digital Why Xero accounting is the digital tax platform for you ...

management accounts

Sage Business Cloud | Making Tax Digital Why Sage Business Cloud or Sage 50cloud is...

SPOTLIGHT ON R&D

Veya

Veya

Around 30 per cent of all residential property transactions arent successful. Veya has been launched to reduce that statistic by removing the frustrations that buyers and sellers face during property transactions.

Our Tweets

Champion Accountants

Growth Protection Core Support Menu
Contact