Never let it be said that this blog doesn't cover the big issues. And hopefully this will be of use to those worrying about the proposed changes...
HMRC will start to write to around one million customers this week to explain how they will be affected by next year's changes to Child Benefit.
The changes, which have already been the subject of media scrutiny, will see the introduction of a High Income Child Benefit Charge. This will come into effect on 7 January 2013.
The new charge will apply when a taxpayer's or their partner's income is more than £50,000 in a tax year and if they or their partner receive Child Benefit.
The charge is gradually increased on earnings between £50,000 and £60,000. For those on more than £60,000 a year, the charge is 100 per cent of the Child Benefit they receive.
The letters sent to customers will contain a flowchart helping them to establish if they are affected by the changes. They will also explain that affected customers have a choice as to whether they continue to receive Child Benefit.
Those who choose to continue receiving it will have to pay the charge through Self Assessment. This also applies to affected HMRC staff who wish to continue to receive Child Benefit.
Along with the letters, HMRC has today circulated an issue briefing on the changes to politicians, the media and other external organisations.