Business owners whose annual income might be topping £50,000 for the first time are being warned not to risk penalties by falling foul of new tax rules governing child benefit.
The benefit is being clawed back by HM Revenue and Customs on a sliding scale for those on more than £50,000 and Jenny Waghorn, personal tax manager of Sheffield-based independent chartered accountants and specialist business advisers Hawsons, of Glossop Road, fears that anyone who has reached this level in the past few months might not be aware of their tax responsibilities and could run into problems.
“Anyone in this category should have registered for self-assessment by October 5, 2013, and, if they have failed to do so, it is vital that they complete a tax return for the year ending April 5, 2013 as soon as possible and pay any liability they owe. Otherwise, the penalties could be quite punitive and it will not be acceptable to say you were not aware of the situation.”
The sliding scale for those whose salaries have reached £50,000 results in full withdrawal of child benefit for those with incomes of £60,000 or more.