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What is Form CH995?

Updated: Jan 25

The High Income Child Benefit Charge (HICBC) is a tax charge that applies to individuals who receive child benefits and have an income above a certain threshold. If you are affected by the HICBC and have engaged a tax adviser or accountant to assist you with your tax affairs, you will need to provide them with the necessary authorization to act on your behalf. This is where Form CH995 comes in.


What is Postal CH995


What is a High Income Child Benefit Charge Tax Case?

A High Income Child Benefit Charge (HICBC) tax case in the UK refers to a situation where an individual or a household is subject to the HICBC tax charge due to their income exceeding the threshold set by the UK government. The HICBC was introduced in 2013 as a way to gradually remove child benefit payments from households where at least one parent earns above £50,000 a year. For households where the income is above £60,000, the entire child benefit amount is effectively removed through the charge.


The HICBC is calculated based on the income of the highest earner in the household, regardless of who is actually receiving the child benefit payments. This means that even if one parent earns above the threshold and the other doesn't, the household may still be subject to the charge.


A High Income Child Benefit charge tax case can arise in several situations. For example, a household may not be aware of the HICBC charge and fail to declare their income correctly to HM Revenue and Customs (HMRC). This can result in HMRC issuing a penalty for incorrect or late declaration, as well as a demand for payment of the HICBC charge.


Another situation that may lead to a HICBC tax case is when there are changes in income within a household during the tax year. If one parent receives a pay rise or bonus that takes their income above the threshold, the household may become subject to the charge. Similarly, if one parent loses their job or has a decrease in income, the household may no longer be subject to the charge.


In some cases, a household may seek legal advice and challenge the HICBC tax charge in court. This may happen if they believe that the charge has been unfairly applied or if they believe that their income should be calculated differently. For example, there have been cases where individuals have argued that the charge should be based on their combined income as a household, rather than just the income of the highest earner.



Understanding HMRC Form CH995

HMRC Form CH995, a pivotal document in the UK's tax system, plays an essential role in managing tax-related matters, specifically concerning the High Income Child Benefit Charge (HICBC). This form is integral for taxpayers and tax professionals dealing with HICBC issues, facilitating the authorization of tax advisers or accountants to act on behalf of individuals in these matters.


What is Form CH995?

Form CH995 is a form issued by HM Revenue and Customs (HMRC) in the UK. It is a form of authority that allows a tax adviser or accountant to act on your behalf with regard to your tax affairs, specifically in relation to the HICBC. The form is also referred to as an "authority to access tax information" form.


The Role of Form CH995 in High Income Child Benefit Charge

The High Income Child Benefit Charge (HICBC) is a tax charge that applies to individuals with higher incomes who receive Child Benefit or whose partners receive it. Form CH995 is exclusively designed for dealing with HICBC, enabling taxpayers to authorize professionals to manage their Child Benefit affairs, especially when impacted by this charge.


Authorization of Tax Advisers Using CH995

Form CH995 allows taxpayers to authorize a tax adviser to manage their Child Benefit, particularly in scenarios where the HICBC applies. This authorization empowers advisers to communicate with the Child Benefit Office on behalf of their clients, managing various aspects such as inquiries about Child Benefit payments, decisions to stop or restart payments, and other related issues.


Why is Form CH995 Necessary for HICBC Issues?

Form CH995 is necessary for HICBC issues because it provides a legal basis for your tax adviser or accountant to act on your behalf. Without this authorization, your adviser or accountant will not be able to access your tax information or communicate with HMRC on your behalf regarding the HICBC.


Who Can Use Form CH995 for HICBC Issues?

Form CH995 can be used by anyone who wishes to authorize a tax adviser or accountant to act on their behalf with regard to HICBC issues. This includes individuals, partnerships, and limited companies. However, the form cannot be used by agents who are already authorized by HMRC, such as those who are part of an accountancy firm.


How to Fill Out Form CH995 for HICBC Issues

Filling out Form CH995 for HICBC issues is similar to filling it out for any other tax issue. The form can be downloaded from the HMRC website or obtained from your tax adviser or accountant. The following are the steps to fill out the form:


Step 1: Personal Details

The first section of the form requires you to provide your personal details, including your name, address, date of birth, and National Insurance number.


Step 2: Adviser or Accountant Details

In this section, you will need to provide the name and address of your tax adviser or accountant. You will also need to specify that you are authorizing them to act on your behalf with regard to the HICBC.


Step 3: Authorization

The final section of the form is where you will sign and date the authorization. By signing the form, you are giving your tax adviser or accountant the authority to act on your behalf specifically with regard to the HICBC.


After completing the form, you should send it to the HMRC office that deals with your HICBC issues. The address can be found on the form or obtained from your tax adviser or accountant. You can also Authorize a tax adviser online by using Government Gateway. Or you can fill it out online and get a printout of this.



Online and Postal Submission

The form can be utilized either through an online service or as a postal form. When using the online service, taxpayers can track the progress of their form submission, ensuring transparency and efficiency in the authorization process. The online service requires a Government Gateway user ID and password, making the process streamlined for those already using HMRC’s digital services.


Required Information

For completing Form CH995, essential information such as the National Insurance number, child’s details, and the tax adviser's information must be provided. This ensures that all necessary data is available to the HMRC for processing the authorization effectively.


Updates and Accessibility

HMRC ensures that the form is accessible and up-to-date, with the latest update in 2023 reflecting the ongoing commitment to maintaining relevance and ease of use. The form's availability in different formats also ensures that it is accessible to all users, including those using assistive technologies.


Importance for Taxpayers and Advisers

For taxpayers, Form CH995 is a crucial tool to manage their Child Benefit efficiently, especially under the purview of HICBC. For tax advisers and accountants, it provides a formal pathway to represent and manage their clients' Child Benefit-related tax matters effectively.


To Which Address Should We Send Filled Form CH995?

If you want to send Form CH995 by post to allow a tax adviser or accountant to act on your behalf for High Income Child Benefit Charge (HICBC) issues in the UK, you should send it to the following address:


HM Revenue and Customs

Child Benefit Office

PO Box 1

Newcastle Upon Tyne

NE88 1AA

United Kingdom


It is important to ensure that you have completed the form accurately and provided all the required information before sending it to HMRC. You should also keep a copy of the completed form for your records.


Once HMRC has received your form, they will update their records to show that your tax adviser or accountant is authorized to act on your behalf for HICBC issues. Your tax adviser or accountant will then be able to correspond with HMRC, provide information, and deal with any issues related to your HICBC.


Benefits of Using Form CH995 for HICBC Issues

Using Form CH995 for HICBC issues has several benefits. These include:


Convenience

Form CH995 allows you to authorize your tax adviser or accountant to act on your behalf without the need for face-to-face meetings or lengthy discussions with HMRC.


Expert Advice

By using a tax adviser or accountant, you can benefit from their expertise and experience in dealing with the HICBC. This can help to ensure that you are fully compliant with the rules and regulations surrounding the charge.


Time-Saving

By using Postal Form CH995, you can save time by delegating your HICBC issues to your tax adviser or accountant, who will be able to handle them on your behalf.


Peace of Mind

By authorizing a tax adviser or accountant to act on your behalf for HICBC issues, you can have peace of mind knowing that your tax affairs are in capable hands.



Why Should We Hire a Tax Accountant to Act On Our Behalf for High Income Child Benefit Charge?


In the UK, navigating the complexities of the High Income Child Benefit Charge (HICBC) can be a challenging task for many taxpayers. The HICBC is a tax charge that applies to individuals earning over a certain threshold who or whose partner receives Child Benefit. Understanding and managing this tax liability effectively often necessitates the expertise of a professional tax accountant. Here's why their services are essential:


Expert Understanding of HICBC Regulations


  1. Complexity of Regulations: The HICBC rules are intricate, and understanding your liability can be complex. A tax accountant has the necessary expertise to interpret these regulations accurately.

  2. Staying Up-to-date: Tax laws and thresholds change frequently. Professional accountants stay abreast of these changes, ensuring that your tax affairs are compliant with the latest regulations.

  3. Income Assessment: Determining your total income for HICBC purposes can be tricky, especially if you have various income sources. Tax accountants can accurately assess your income to determine if you are liable for HICBC.


Efficient Management of Child Benefit and Tax Affairs


  1. Calculating the Charge: If you're liable for HICBC, calculating the exact amount can be complicated. A tax accountant can do this accurately, preventing over or underpayment.

  2. Optimizing Child Benefit Claims: They can advise on how to optimize your Child Benefit claims in light of HICBC, potentially leading to better financial management.

  3. Dealing with Overpayments: If you've overpaid HICBC due to errors in your self-assessment, a tax accountant can help rectify this and claim any refunds due.


Guidance on Financial Decisions


  1. Income Adjustments: Tax accountants can offer advice on adjusting your income, such as through pension contributions or charitable donations, to reduce or eliminate HICBC liability.

  2. Long-Term Financial Planning: They can integrate HICBC considerations into your broader financial plans, ensuring that your family's financial health is maintained.

  3. Understanding Implications of Stopping Child Benefit: If considering opting out of Child Benefit to avoid HICBC, a tax accountant can explain the long-term implications, such as effects on National Insurance contributions and state pension.


Assistance with Compliance and HMRC Communications


  1. Filing Returns: Tax accountants ensure that your Self Assessment tax returns are correctly filed, including all necessary HICBC information.

  2. HMRC Correspondence: They can handle communications with HMRC on your behalf, especially if there are discrepancies or disputes regarding HICBC.

  3. Use of Form CH995: For authorising a tax adviser to handle Child Benefit issues, including HICBC, the use of Form CH995 is essential. A tax accountant can manage this process efficiently.


Risk Mitigation


  1. Avoiding Penalties: Incorrect filing or failure to report HICBC can lead to penalties. A tax accountant helps mitigate these risks by ensuring compliance.

  2. Audit Support: In case of an HMRC audit, having a tax accountant means you have professional support to navigate the process.


Personalized Advice and Peace of Mind


  1. Tailored Strategies: Every taxpayer's situation is unique. A tax accountant provides personalized strategies to handle HICBC based on individual circumstances.

  2. Peace of Mind: Knowing that a professional is handling your HICBC affairs provides peace of mind, freeing you from the stress and time involved in dealing with complex tax matters.


Navigating HICBC in the UK requires a thorough understanding of tax laws, meticulous financial planning, and strategic decision-making. The services of a tax accountant are invaluable in this regard, providing expertise, ensuring compliance, and offering tailored advice for efficient financial management. Whether it's calculating your liability, managing Child Benefit claims, or dealing with HMRC, a professional tax accountant is a crucial ally in effectively handling HICBC-related matters.



Key Features of Form CH995

  • Authorisation Capabilities: Once authorised through Form CH995, an agent can handle various aspects of Child Benefit, including inquiries about payments, decisions to stop or restart payments, and other Child Benefit-related issues.

  • Information Required: To complete the form, you need the taxpayer's National Insurance number, the child's details, and the tax adviser's information.

  • No Requirement for Form 64-8: Updated guidance clarifies that for authorising an advisor for HICBC matters, it is not necessary to submit Form 64-8, simplifying the process.


Impact of Form CH995 on Taxpayers and Advisers

The use of Form CH995 is significant for both taxpayers and tax advisers. It streamlines the process of managing Child Benefit, particularly under the HICBC, by formally authorising agents to act on behalf of taxpayers. This authorisation ensures that the Child Benefit Office continues to send information about the claim to the taxpayer while allowing the agent to manage the specifics.


Form CH995 serves as a critical tool in the UK tax system, facilitating the management of Child Benefit affairs under the HICBC. By understanding the submission methods and capabilities of this form, taxpayers and advisers can navigate the HICBC more effectively. The next part of this article will delve deeper into the implications of Form CH995 and provide insights into how it interfaces with broader tax considerations and obligations in the UK.


The High Income Child Benefit Charge can be a complex tax charge that can be difficult to navigate without the help of an expert. By using Postal Form CH995 to authorize a tax adviser or accountant to act on your behalf, you can benefit from their professional knowledge and experience.


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