HMRC preparing to send out fines for UK households who earn over £50,000
HMRC is preparing to send out fines for people who earn over £50,000 in a brutal blow. The Labour Party government's tax department has issued a warning over the looming self assessment tax return deadline on January 31.
Dean Butler, managing director for retail direct at Standard Life, part of Phoenix Group, 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.
“This is called the High Income Child Benefit Charge and it means you won’t be entitled to some or all of the Child Benefit. If your partner’s income was over £50,000 but yours was less, your partner needs to declare the Child Benefit on their tax return.”
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Mr Butler said: “It’s important to be aware that as of the current tax year, the threshold rises to £60,000 – but for this return, it’s still £50,000.” Mr Butler said: “Tax returns aren’t known for being fun, 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.”
If you think you are no longer required to complete an Self Assessment return, you can check if you need to send a Self Assessment tax return. Customers should include their bank account details when filing, so that if HMRC needs to make a repayment, they can do so quickly and securely.
It is important that customers let HMRC know of any changes to their circumstances. Customers can use the HMRC app to update their details including a new address or name. Customers also need to let us know if they’ve stopped being self-employed or need to change their business details. This can be done online at GOV.UK.