HMRC have sent us advance copies of some of the documents being send to certain taxpayers who might be subject to the new High Income Child Benefit Charge (HICBC). HMRC have also today released the first version of their guidance on the HICBC.
The HICBC guidance is at: www.hmrc.gov.uk/childbenefitcharge
The online ‘KANA’ form to elect not to receive Child Benefit is at: https://online.hmrc.gov.uk/shortforms/form/CBOptOut?dept-name=&sub-dept-name=&location=43&origin=http://www.hmrc.gov.uk. Taxpayers will need to submit this to HMRC before 7 January for it to be effective for 2012/13.
The online KANA form to restart Child Benefit payments is at: https://online.hmrc.gov.uk/shortforms/form/CBOptIn?dept-name=&sub-dept-name=&location=43&origin=http://www.hmrc.gov.uk
The online KANA form to request some information about a partner’s income or Child Benefit receipts is at: https://online.hmrc.gov.uk/shortforms/form/HICBCDisc?dept-name=&sub-dept-name=&location=43&origin=http://www.hmrc.gov.uk
Letters are being send this week to most taxpayers that HMRC think will be affected by the HICBC; the letters are due to start arriving on doormats later this week – probably Saturday.
The documents include:
- a copy of the letter
- the flowchart that will accompany the letter
- the new Child Benefit (CB) claim form, which includes an optional election not to receive CB
- some FAQs
- copy of the KANA election form to enable current CB recipients to opt not to receive CB from 7 January 2013; and
- the HMRC directions – these include confirmation that an election will not have effect if the high income person’s income unexpectedly falls and ends up in the band between £50k and £60k if you notify HMRC on a revocation form, so these people should not lose out.
Our press release on this is at: http://www.tax.org.uk/media_centre/Press+Releases/cbtc_change. This includes a brief summary of the provisions.