Don’t forget about child benefit
May 06, 2020
With many employees being furloughed or made redundant, and many self-employed individuals now generating lower profits than before, you may well be among those who see their income for 2020/21 fall below £50,000 a year.
£50,000 is the limit at which child benefit starts being taxed, and this means that you may now be able to claim child benefit without paying tax on it.
How much could I receive?
Since 6 April 2020, child benefit has risen to £21.05 a week for the eldest child and £13.95 for each additional child.
You may previously have been put off claiming it, because for every £100 that you or your partner earns over £50,000, you pay a 1% tax charge on the funds you receive. And if you earn over £60,000, the whole of the benefit is lost through tax, so many parents have simply decided to opt out.
However if you have been furloughed, and your 20% drop in salary takes your income below £50,000, it might be worth investigating child benefit again. You may be eligible to claim without being liable for the High Income Child Benefit Charge, and this can be worth up to £1,820 a year for a two child household.
If you have any queries about whether you’re eligible or how to go about making a claim, please get in touch and we’ll be happy to help.