Check if you’re owed £1,100 a year in child benefit if your income has dropped
PARENTS who've lost their job, had to take a pay cut or who can't run their own businesses due to coronavirus should check if they can claim thousands a year in child benefit.
Child benefit claimants currently get £21.05 a week for their first child, and £13.95 a week for each additional child.
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So you have to pay back 1 per cent of any child benefit you get for every £100 you earn over £50,000 each year.
And once you hit £60,000, that tax charge completely wipes out any gain from taking out child benefit.
Parents should still claim despite this though, as not doing so could seem them loose vital national insurance contributions needed to qualify for the state pension.
But tax experts at accountancy firm Blick Rothenberg reckon tens of thousands of parents who've seen a drop in income because of coronavirus could now claim the benefit.
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He adds that families should claim sooner rather than later as you can only backdate claims by three months.
"Some families might be tempted to wait for a few months, to see how long the coronavirus lockdown lasts and get a better understanding of what their income could be for 2020/21," said Mr Salter.
"But it is only possible to claim child benefit retrospectively for a maximum period of three months.
If you're in a couple, only one of you can submit the claim although both incomes will be taken into account.
HMRC points out that income can include furloughed payments from the government's jobs retention scheme, but Universal Credit payments won't be counted as this isn't a taxable benefit.
Parents of new-borns are also still be able to claim child benefit despite the outbreak of coronavirus meaning births can't currently be registered.