With over a year’s warning it may surprise some to know that 110,000 claimants will face fines later this month if they fail to register and submit a Self Assessment.
As the deadline to register in time for Self Assessments has now passed, tens of thousands of higher-earning claimants receiving Child Benefit will be hit with an automatic £100 penalty in addition to any further delays they accrue.
In January 2013 the higher earning threshold for claiming Child Benefit reduced from £60,000 to £50,000 which prompted families where one parent earned over the threshold, the choice to opt out or repay the surplus tax in a Self Assessment the following January.
The BBC has reported that an estimated 90% of those affected by the changes have either registered for a Self Assessment or opted out of Child Benefit, leaving 110,000 sitting idly by as inevitable fines are levied.
For late filers after three months, there are additional daily penalties of £10, up to a maximum of £900 if no forms have been returned. At six months, there is a further penalty of 5% of the tax due or £300, whichever is greater. After 12 months, there is an additional 5% or £300 charge.