Higher rate taxpayers must register for self assessment with HMRC by 5 October 2013 if they receive child benefit payments. Parents receiving child benefit from 7 January 2013 will be liable to pay additional tax on income over £50,000 per annum. The child benefit is effectively tapered for earnings above £50,000 and reduced to nil for incomes above £60,000. The tax is payable based on the earnings of the parent with the highest level of income. Taxpayers have the choice of either stopping the child benefit payments or receiving the payments and paying over the tax when their tax return us due on 31 January in the following year.
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