EY Budget reaction: Changes to child benefit will drag more people into self assessment
EY Budget reaction: Patrick Stevens, a tax partner at EY, comments on changes to child tax benefit
“The Chancellor has announced that the threshold beyond which child benefit will be withdrawn will be raised to £50,000 (the previous proposal was for child benefit to be withdrawn from all households with a higher rate taxpayer). The benefit will now be withdrawn gradually so that only those in a household where an individual earns more than £60,000 will receive no child benefit at all.
“Contrary to the Chancellor’s stated aim of simplifying the tax system – this introduces an additional level of complexity to the personal tax system and will increase the number of individuals who will need to complete tax returns. This will, in turn, lead to an increase in bureaucracy to process those returns. This is precisely the complex system which the Chancellor claims to be seeking to remove with the removal of the age allowance.”