through tax codes, but this could take up to three years, it added. If a couple separated in the interim it could be “impossible” to get the money back.
Similarly, the new system could see taxpayers unwittingly fined for wrongly claiming the benefit because their partner’s income exceeded £50,000.
DWP STAKEHOLDER BULLETIN – MAY 2012
24 May 2012
The Department for Work and Pensions’ latest Stakeholder Bulletin has now been published.
The May issue includes information about:
The Pensions Bill Personal Independence Payment – research findings Health and Disability Assessment Framework providers announced Health and well-being tools and guidance for employers Social Fund reform Employment and Support Allowance claimant journey DWP consultations
DWP Stakeholder Bulletin – May 2012
CHILD BENEFIT INCOME TAX CHARGE Q & A
31 May 2012
It was announced at Budget that legislation will be introduced in Finance Bill 2012 that imposes a new charge on a taxpayer who has adjusted net income over £50,000 in a tax year, where either they, or their partner, is in receipt of Child Benefit for the year.
This will have effect from 7 January 2013.If both partners have adjusted net income over £50,000, the partner with the higher income is liable for the charge.
The income tax charge will apply at a rate of one per cent of the full Child Benefit award for each £100 of income between £50,000 and £60,000. The charge on taxpayers with income above £60,000 will be equal to the amount of Child Benefit paid.
Child Benefit claimants will be able to decide not to receive Child Benefit if they or their partner do not wish to pay the new charge.
For the tax year 2012-13, the first year of the charge, the amount of income taken into account will be the full amount of income for 2012-13 and the amount of Child Benefit will be that paid in the period from 7 January 2013 to the end of the tax year. For subsequent years, the full amount of Child Benefit and the income for the year will be taken into account.
Follow this link to view the Q & As
Tax Information and Impact Note
EARLY ROLL OUT OF UNIVERSAL CREDIT IN MANCHESTER AND CHESHIRE
31 May 2012
CIPP Policy News Journal
12/04/2013, Page 356 of 362
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