HM Revenue and Customs (HMRC) is reminding high-earning Child Benefit recipients that they have until 6 January to decide whether to stop receiving the benefit.
The High Income Child Benefit Charge (HICBC) starts on 7 January. The new charge will apply when a taxpayer or their partner's income is more than £50,000 in a tax year, and if they or their partner receive Child Benefit.
HMRC chief executive Lin Homer said more than 155,000 people had already decided to stop receiving the benefit.
For those with income of more than £60,000, the tax charge is 100% of the amount of Child Benefit. For income between £50,000 and £60,000, the charge is gradually increased to 100% of the benefit.
Those affected will need to decide whether to keep receiving Child Benefit and pay the tax charge through self assessment, or to stop receiving Child Benefit and not pay the new charge.
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