From 7th January, families with children and one parent with income of more than £60,000 per year, will no longer be eligible for Child Benefit and those earning between £50,000 and £60,000 will have their Child Benefit entitlement reduced by a High Income Charge.
You have until Sunday evening (6th Jan) to opt out of receiving Child Benefit or you will continue to receive it but will have to register for and complete a self assessment tax return to have the money reclaimed either by paying it back as a lump sum or via PAYE.
You can opt out online by clicking here.
The choice to opt out is yours, so you need to consider if you would prefer to receive the benefit but have it clawed back or not receive it in the first place.
If your income is in the borderline areas between £50k – £60k you may wish to consider some strategies to reduce your income such as making additional pension contributions, make more gift aid payments or consider salary sacrifice.
If you would like some advice on managing Child Benefit, or any other Tax Credit Planning, why not drop us a line and we can go through your options with you.