If you or your partner earns in excess of £50,000 this year, you will lose 1% of the Child Benefit you receive for every £100 of income above this limit.

Once income reaches £60,000, this benefit is withdrawn completely.

This change came into effect on 7 January 2013. Prior to this date, it was possible to notify the Child Benefit agency that you no longer wished to receive this benefit.

However, if your income is above these limits and you have not registered to cease these payments, you will be liable for the High Income Child Benefit Charge at the end of the tax year.

This charge will be collected via the self assessment system operated by HMRC and you should disclose receipt of the Child Benefit on your tax return next year if this charge applies to you.

If you do not usually complete tax returns, you will need to register with HMRC for self assessment by 6 October 2013 and complete a tax return online by 31 January 2014 to pay this charge.

You can still register now to stop the child benefit payments by clicking here to visit HMRC’s website.

In this case, you will have to pay the High Income Child Benefit Charge for the period between 7 January 2013 and the date you register.

Providing that you registered for the benefit at the time your child was born, any stay at home parents will continue to receive the National Insurance credits for State Pension purposes even if you cease to receive the benefits.

It is vital that you register any further children that you have for this benefit even if you are not entitled to the income to ensure that they receive a national insurance number at age 16.

It is possible for you to preserve this allowance by reducing your income below the limit in a tax efficient manner. This is a complex area and if you would like any further guidance on this, please contact Karen Robinson (karenrobinson@cullenfp.co.uk).