A short article on the Child Benefit Allowance which some of you will find very useful, especially for many the receipt of Child benefit allowance has been an important source of income and especially under the current economic condition, so it is important to be aware of the rules and particularly during the current climate.
The High Income Child Benefit Charge (HICBC) starts to clawback child benefit where the recipient’s income or that of their partner exceeds £50,000. All child benefit received is returned in the form of the charge where the income of either party is more than £60,000.
As a result of the Coronavirus pandemic, many people have suffered a reduction in income. The furlough scheme caps the grant at £2,500 a month, and where income is not topped up by the employer, individuals who were previously within the scope of the HICBC may not be for 2020/21.
Likewise, self-employed taxpayers who were unable to work during the pandemic and do not qualify for a grant under the Self-Employment Income Support Scheme because their average profits exceed £50,000 may also outside the HICBC for 2020/21.
It is prudent to review your and your spouse’s income if you have stopped child benefit because you previously fell within the HICBC to see if it is likely to apply for 2020/21, and to restart child benefit if it is not. This can be done online or by contacting the Child Benefit Office.
Couple of HMRC links below for detailed information
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The information contained in this article is for general information purposes only and does not constitute advice, Whilst we endeavour to keep the information up-to-date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability for a particular purpose. We recommend that professional advise should be taken from a suitably qualified expert before undertaking any action.