UK PAYE Tax Calculator / Salary Calculator

The number 1 free UK salary calculator tax calculator since 1998. Calculate salary, national insurance, HMRC tax and net pay

Fears that many parents to be hit by fines due to Child Benefit

Fears are growing that many middle-income families will leave it too late to register for Self Assessment in order to repay the taxes owing on their child benefit. Registering can take 10 days, maybe more, at busy times.

With the January 31st self assessment deadline looming, this year sees a new group join the Self Assessment Return Club- middle-income parents. The new High Income Child Benefit Charge, introduced last year, has meant that any parent earning over £50,000 net a year, will have their child benefit taxed. The means by which this tax is collected is self assessment. Nearly half a million parents have already opted out of receiving child benefit in order to avoid having to make a self assessment return. However, there are growing fears that many of the 500,000 parents remaining in receipt of the payment and earning above the income threshold, have not yet registered for self assessment.

In order to complete an online self assessment return each individual must register with HMRC. This involves a code being sent out by HMRC in the post which can take up to 10 days, possibly more if many leave it to the last minute. Making a late self assessment return, by even one day will cost parents £100, regardless of whether any tax is owing or not.

Parents in receipt of child benefit during the 2012/13 tax year and earning over the £50,000 net figure will need to complete a Self Assessment tax return for 2012/13. This also applies to parents who opted out of child benefit payments during the year, but did receive a payment during the tax year. HMRC have attempted to contact everyone liable to make a return, but just because you have not received notification from HMRC does not mean you are not liable to make a return.

Parents in receipt of child benefit are being urged to accurately assess their earnings for 2012/13 to make sure they are not liable to pay tax on their child benefit. Fines for late filing of self assesment tax returns and payment of tax owing are immediate and accumulate very quiclkly. See our breakdown here to scare yourself into action!

Anyone who needs to make a self assessment return and has not already registered with HMRC is being urged to do so as soon as possible. HMRC have details on how to regsiter here.

For help on completing your self assessment return see our Self Assessment Guide.

Our article may also be of interest Tips on how to reduce the amount of Child Benefit you may lose.


This article was published in our News section on 08/01/2014.

Some Guides you may be interested in

  • Company car tax for business owners What are the tax implications of buying a company car from a tax perspective? Take a look at our indepth analysis.
  • Landlords - Should you incorporate or not? Iain Rankin our Property Tax Expert, from TaxKings, takes a run through the decision making process to help you weigh up what the appropriate course of action is for you
  • What’s Required For Your First Digital VAT Return The government has started to roll-out Making Tax Digital (MTD) in a bid to engineer the UK tax system so that it embraces the online era. I hope this guide will help you understand the implications.
  • Scotland Vs England And Wales: What Are The Differences In Tax? There are significant differences to how much tax you pay in Scotland in comparison to England.
  • AirBnb vs long-term-rentals For the holiday maker & professionals alike, it’s safe to say that short-term let platforms - such as AirBnb, Flipkey, or Homeaway - have been a bit of a game changer.
  • Bookkeeper v Accountant Are you paying your accountant to prepare your books? Could you save some money by hiring a bookkeeper? Clare Doherty explains the key differences…
  • 5 Tax changes that may affect you this year Following the start of a new tax year, it’s always useful to stay abreast of changes to your responsibility. Certain legislative updates in 2019 have been overshadowed by the spectre of Making Tax Digital for VAT, causing smaller (but significant) changes to be overlooked.
  • Top Ten Claimable Expenses for Limited Companies Let’s start with a thought experiment. I’ll set the scene. You’re a limited company owner, and you, as the director, are the sole employee. You also - understandably – love learning about tax. You open up the Monday morning paper to find some exciting news - HMRC has hinted there are going to be some big changes in the upcoming UK budget.....
  • Salary vs Dividends A guide to tax efficient remuneration for Limited Company directors for 2019/20.
  • What changes to buy-to-let mortgage interest tax relief for landlords? Undoubtedly the biggest source of tax confusion for prospective landlord clients that we speak to here at TaxKings relates to the changes to tax relief for residential landlords, introduced by the UK Government in April 2017.

More from our News section