At our open day in November 2012, we were delighted that Antony Federer from Rayner Essex accountants popped in with cake, and to give a talk entitled “Tax Tips – My top 5 for freelancers.”
This was a lively presentation with plenty of interaction and discussion – thank you Antony. Here is the fourth of his five top tax tips:
Be aware of Child Benefit
If there is one household income in excess of £60k pa, you will lose your child benefit – or you will have to repay it if you do claim it.
This is all new as of January 2013, but the advice seems to be: If you have your first baby, do register for child benefit even if you think you cannot claim it – you can then opt out. If you do claim it and there is a household income in excess of £60k pa, you will need to fill out a tax return and repay it at the end of the year.
If you earn between £50k and £60k pa, Child Benefit will be reduced by 1% for every £100 you earn.
Depending on your annual income, you may want to look at reducing your income (see Antony’s third tip in an earlier blog).
If this has given you food for thought, then do consult a reputable accountant to help you further. This information was correct at time of Antony’s presentation in November 2012.