Thousands of Britons earning above £50,000 are facing a race against time to complete their self-assessment tax returns or risk substantial financial penalties. With the 31 January deadline rapidly approaching, HMRC has issued an urgent reminder to higher earners who might not realise they need to file.
Who Needs to Act Now?
If you're employed but earned more than £50,000 in the 2022/23 tax year and received child benefit, you're likely required to complete a tax return. This applies even if you've never filed one before and typically pay tax through PAYE.
The High Income Child Benefit Charge Explained
The controversial charge affects individuals earning over £50,000 who receive child benefit, or whose partner receives it. For every £100 earned above £50,000, you repay 1% of the child benefit received. Once earnings hit £60,000, the entire benefit must be repaid.
Don't Underestimate the Penalties
HMRC doesn't take missed deadlines lightly. Immediate penalties include:
- £100 fixed penalty for missing the 31 January deadline
- Additional daily charges after three months
- Further penalties at 6 and 12 months
- Interest charges on any unpaid tax
Essential Steps to Take
- Register for self-assessment immediately if you haven't already
- Gather all necessary documents including P60, savings interest statements, and child benefit details
- File online through the Government Gateway
- Arrange payment for any tax owed by 31 January
With just weeks remaining, experts warn that leaving it until the last minute could prove costly. The message is clear: if you're in this income bracket, check your obligations now rather than facing unexpected fines later.
