HMRC are reminding parents with an income of more than £50,000, who continued to receive Child Benefit after January 7th 2013, that they need to file a tax return before 31st January 2014.
Due to changes in the way Child Benefit is assessed, people falling into the above bracket are liable to pay a high income child benefit charge - this is equivalent to one per cent of every £100 of income above £50,000, essentially repaying part or all of the Child Benefit received.
The charge, and subsequent need to file a tax return, could have been avoided by opting out of Child Benefit by 7th January 2013.
The tax return for income earned between 6th April 2012 and 5th April 2013 would provide an opportunity to declare income and have the charge calculated and paid. It has an online submission deadline date of 31st January 2014, which is just two weeks away.
With the deadline date so close, HMRC is reminding parents that if they are required to submit a return in order to pay the charge and either fail to do so, or submit late, there are automatic penalties - starting with a £100 fixed penalty on 1st February.