10% of 1.1m people affected by High Income Child Benefit Charge have still not contacted HMRC and could face losing the benefit and receive penalties.
Parents on individual salaries of £50,000 or higher were required to either opt out of receiving Child Benefit or register for Self Assessment by the October 5th deadline, in order to avoid financial penalties. Families in which parents each earn less than £50,000 are likely to continue to receive child benefit without having to pay the money back.
Penalties will be raised on a case by case basis and depending on the circumstance, the penalty could be reduced to zero, however tax would still be applicable.
It must also be noted that eligibility for child benefit depends not just on earnings but on "adjusted net income". This includes all taxable net income, including rental income and investments. bonuses and benefits in kind.