When I left the RN last October I received a large gratuity, in excess of £50k. I also receive a pension and am currently employed for 16hrs a week earning minimum wage. All of which the taxman is aware of. Happy days.
I have two children under the age of 18 for whom my wife and I are in the process of receiving child benefit. The latest changes state that I must pay a tax on this benefit if, and I quote (all the items are to apply in order to pay the charge):
"You have an individual income of over £50,000 a year, and
either you or your partner received any Child benefit payments after 7 January 2013, and
your income for the tax year (in this case 2012-13) is higher than your partners. The partner with the higher income is liable to pay the charge if both partners have income over £50,000." Unquote.
Taking those three points one at a time:
a. Does that include my gratuity as it is/was a form of income albeit not taxed for the period concerned.
b. Yes, we have received CB payments since Jan.
c. My income is higher than my wife's, although we are both well under the £50 mark if you disregard the gratuity.
My question is: Do I declare my gratuity to the Child Benefit office as it was part of my income for that year?
A swift look over the page states, among other things "You might owe us money you received any other income that has not been taxed".
I take this to mean that I MUST declare my gratuity...
Informed thoughts on this would be much appreciated. As you know, tax/benefits etc are a veritable minefield and sometimes it's easier to find the answer in a place such as this as opposed to trying to read the whole of the HMRC website and still not have a clue...
I have two children under the age of 18 for whom my wife and I are in the process of receiving child benefit. The latest changes state that I must pay a tax on this benefit if, and I quote (all the items are to apply in order to pay the charge):
"You have an individual income of over £50,000 a year, and
either you or your partner received any Child benefit payments after 7 January 2013, and
your income for the tax year (in this case 2012-13) is higher than your partners. The partner with the higher income is liable to pay the charge if both partners have income over £50,000." Unquote.
Taking those three points one at a time:
a. Does that include my gratuity as it is/was a form of income albeit not taxed for the period concerned.
b. Yes, we have received CB payments since Jan.
c. My income is higher than my wife's, although we are both well under the £50 mark if you disregard the gratuity.
My question is: Do I declare my gratuity to the Child Benefit office as it was part of my income for that year?
A swift look over the page states, among other things "You might owe us money you received any other income that has not been taxed".
I take this to mean that I MUST declare my gratuity...
Informed thoughts on this would be much appreciated. As you know, tax/benefits etc are a veritable minefield and sometimes it's easier to find the answer in a place such as this as opposed to trying to read the whole of the HMRC website and still not have a clue...