Changes in income mean more parents will become in line to receive Child Benefit.
With Covid-19 and the potentially disastrous economic aftermath, families are going to be amongst the hardest hit. Company owner, Michael Chadwick, discusses some possible good news about Child Benefit payments.
Some possible good news is that previously high earners who were not eligible for Child Benefit might now qualify. Government support for a family could now be available where there is a fall in income due to the coronavirus pandemic.
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.
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