Who declares and pays the High Income Child Benefit?
Q. I have a husband and wife who are both within self-assessment. Both have earnings in excess of £50,000 for the year 2014/15. The wife receives child benefit. Should the entry in respect of the high income child benefit charge be entered on the wife’s tax return as she is the person receiving the benefit?
A. The criterion for deciding the person liable to the high income charge is the spouse with the greater relevant income and not the income of the recipient of the child benefit. It may well be the case that the charge will arise on the spouse who does not receive the child benefit. It would be correct to consider the relevant income of both spouses as a situation may arise where the spouse with the higher income is not within self-assessment. In these circumstances, that spouse would need to register for self-assessment by 5th October following the year to avoid any late notification penalty.
Published September 2015