A group of top accountants has stated that government plans to take away child benefit from middle-class parents who earn more than £50,000 of child benefit will be disastrous.
The Institute of Chartered Accountants for England and Wales states that ‘as currently set out, the legislation is seriously flawed in principle and in practice’.
The body is urging the coalition government not to stop child benefits for families where one parent earns more than £50,000, warning that not to do so ‘could be an operational and reputational disaster for the government and HMRC.’
Moreover, the ICAEW warns that 500,000 families will have to begin self-assessment, which would be ‘very expensive’ for HMRC in terms of administration costs.
The body, which represents 116,000 chartered accountants, says that the plan ought to be ‘withdrawn for a complete re-think and re-launch’.
It warns that the plan could be an ‘operational and reputational disaster’ for the government and HMRC.