The High Income Child Benefit Charge has been in for a few years now.  If the higher earner in your household earns over £60,000, then you are not eligible to claim child benefit, and if your income is between £50,000 and £60,000 then an element of the child benefit is repaid via your tax return.

This has meant that many households have stopped claiming child benefit, as they see little point in claiming it, only for it to be paid back again via self-assessment.

In the current climate, with the furlough scheme in place and income levels falling for the self-employed, many individuals will see their income levels go down. Individuals placed on the 80% Furlough scheme who previously earned £60,000 (or just over) will now be receiving under £50,000 and may become eligible to claim child benefit.

A claim for child benefit can only be back dated for three months so you will need to decide if you want to start claiming again for this tax year by the end of June to get maximum benefit.

For the 2020/21 tax year child benefit rates are £21.05 per week for your first child and £13.95 per week for subsequent children. A family with two children could therefore be entitled to £1,820 a year.

If you do make a claim and at the end of the tax year your income exceeds £50,000 but is less than £60,000 you will be required to submit a tax return and repay a proportion of the benefit received. The amount repayable is 1% for every £100 earned over £50,000. Once you earn over £60,000 the full amount will be repayable via your tax return.

An assessment therefore does need to be made as to whether this is worth claiming again -but it could provide you with much need cashflow in the next few months.

Here is the link for more information

If you want to discuss you own position with regard to child benefit, then please do get in touch.