HMRC posts one million letters on child benefit changes

The letters explain the new High Income Child Benefit Charge that takes effect from 7 January 2013. The new charge will apply when a taxpayer's or their partner's income is more than £50,000 in a tax year and if they or their partner receives child benefit. For those with income of more than £60,000, the tax charge is 100% of the amount of benefit. If income is between £50,000 and £60,000, the charge is gradually increased to 100% of the benefit. HMRC said those affected will need to decide whether to keep receiving child benefit and pay the tax charge through self-assessment, or t...