Self-employed and higher earners who earned £50,000 or more and claimed Child Benefit in the financial year 2023/24 will need to fill out a self-assessment by the end of the month.
Dean Butler, managing director for retail direct at Standard Life, said that tax returns were not known for “being fun”.
However, the expert said: “But it’s important to understand what’s required and file it on time to avoid any penalties which can be costly – last year, HMRC collected a record £220million in late-filing fines.”
The warning is for parents who claim Child Benefit, a monthly payment which is worth £25.60 a week for the eldest or only child and £16.95 a week for any younger children.
This benefit is only paid to parents earning £50,000 or under, so if you earn above that, you may have to repay some or all of any benefit you have received. This payment is called the High Income Child Benefit Charge.
This year, the threshold has been raised to £60,000, but for the 2023/24 year – the year this month’s self-assessment deadline applies to – it is still £50,000.
The expert said: “If you earned over £50,000 in the 2023/24 tax year and you or your partner claim Child Benefit, you have to declare this on your self-assessment tax return, or you may face a penalty.”
He also urged parents to make sure they filled in their tax returns on time.
He said: “If you fail to file your return, file it after the deadline, or fail to pay your tax bill, you’ll incur a penalty. If your return is up to three months late, you’ll be charged £100, and if it’s any later then you could be charged an extra £10 a day up to £900. There are further penalties if your return is more than six or 12 months late. If you’re late paying your tax bill then you’ll be charged interest on late payments too. You can appeal against a penalty if you have a legitimate excuse, but it’s far less hassle to file your return on time and pay your bill in the first place!”
Child Benefit is paid every 4 weeks and claiming it means you can get National Insurance credits, which count towards your State Pension.
