As a result of the cuts in the Department for Work and Pensions budget and its welfare reform, Child Benefit will be withdrawn from families with a higher rate taxpayer (stated as affecting people earning more than £44,000) from January 2013. However, clients who are currently basic rate taxpayers but have total incomes between £42,375 and £43,875 will be caught by the Child Benefit Trap and lose their Child Benefit as a result of the higher rate tax threshold reducing.

You will not be caught by this if your total incomes are within the basic rate tax band in the 2012/13 tax year, as well as 2013/14 and beyond.