In the past, any parent earning over £60,000 excluded their whole family from claiming Child Benefit and those earning over £50,000 had their entitlement restricted via a special tax charge. However, with the expected reduction in incomes, it may now be that individuals who were previously earning over the above sums might now qualify for Child Benefit, and therefore easing pressure on household budgets.

Parents unfortunatly expecting their income to fall, may wish to start claiming sooner rather than later. There is a three month time limit on retrospective claims for this benefit. If your present position is unclear, then you may wish to claim the benefit now and review the position when preparing your tax return for submisssion in January 2022. Furloughed pay and salary top ups are considered as income for Child Benefit purposes, as are all earnings, self employed profits and income from rental properties. Currently parents can claim up to £21.05 a week for a first child and £13.95 a week per child for subsequent children.

We are here to help

If you would like to talk to a qualified accountant or tax specialist about these issues or any other financial matter, then please do not hesitate to get in touch. We are now operating a ‘virtual office’ with Directors and Senior Managers still available to respond to calls and emails, so we are on hand to offer support and guidance for your business throughout this testing time.

Find out more about Child Benefit payments. You can also email or call us on 0161 370 9600.