Households seek ways to keep benefits HM Revenue & Customs has begun sending out letters to 1.2m families that stand to lose some or all of their child benefit under rules taking effect in January. From January 7, households with a combined taxable salary of over £50,000 will start to have their child benefit withdrawn, which is £20.30 a week for the first child and £13.40 for any other children. The change will happen via a new tax levied on the highest earner in the household at one per cent of the value of child benefit per £100 of income beyond £50,000. So someone earning £55,000 who has two children would pay an extra £876 in tax - half of their £1,752 annual child benefit. Those earning over £60,000 will have it withdrawn altogether. The amounts people owe will be collected via the self-assessment regime and HMRC will send out a tax return to those expected to be hit with a charge. This is a blow to many higher earners who have in recent years been told they no longer need to fill in a tax form because their financial affairs are relatively straightforward. Anita Monteith at the ICAEW Tax Faculty, said: "HMRC estimates that 500,000 taxpayers who do not currently complete a self-assessment return will be liable and have to complete a tax return. If you are one of them you will need to start collecting together your paper work ready to file a paper return, due in October 2013, or an online self-assessment return in January 2014. Accountants at Baker Tilly say problems are likely to arise with the new regime's definition of "relationships." "We are now looking for "partners" and so simply "living together as husband and wife or civil partners" links you together firmly as marriage," said Karen Clark, head of personal tax, at Baker Tilly. Advisers will want to know how many weeks claimants were living as partners, as well as income levels to establish who needs to make the return. Some accountants predict that the new rules will result in a number of wealthy families deciding to give up their child benefit rather than go through the complex process of having to pay tax on it. Others report increased levels of enquiries from clients seeking to manipulate their incomes to reduce their tax liabilities. Making extra pension contributions is expected to be the most popular way to reduce taxable income below the new thresholds. Individuals can also enter a "salary-sacrifice" arrangement with an employer in return for tax-free benefits in kind - such as additional holiday entitlement or childcare vouchers. This would allow someone earning over the threshold to bring their taxable salary down in order for them to keep their child benefit. A further option is to delay entitlement to salary or bonuses, or to switch to reduced hours and less pay.