Child benefit self assessment

Rachel

Hello

Would the Accountants fee be tax deductible for a self assessment that just holds employment income and child benefit payments? Employee not a director.

I assume not but wondered if anyone knew different.

Many Thanks

Fingersan

Hi Rachel

The High Income Child Benefit Charge (HICBC) is just another tax calculatuion to make on a Tax Return and so there is no change to the concept of completing a Tax Return in so far as fees are concerned. If a person completes a Tax Return as an individual, then this remains a non tax allowable cost.

As I remember somebody from the Revenue once saying... 'There is no tax relief on complying with the law'!!

Hope this helps.

Rachel

Thanks, as I said I thought this would be the case. Client annoyed at being forced to do self assessment. He would stop child benefit altogether but his wife isn't working as she is raising their family and claiming means that she gets her stamp for future pension etc

KitKat

Hi Rachel,

I had a look at HMRC's website only yesterday about the HICBC and it seems you can stop receiving the benefit, but you have to fill in a 'Child Benefit claim form' to state that you're still entitled to it, (you're just not receiving it) this then helps you qualify for the NI credits that can protect your entitlement to State pension.

I hope that helps

K