Child Benefit is available to parents and guardians of a child under the age of 16, or under the age of 20 if they are in education or training. Families with an income of below £60,000 are entitled to £21.05 for their eldest or only child. A lower figure of £13.95 is allocated for any additional children. These entitlements were recently increased by 1.7 percent in line with the start of the new 2020/21 tax year.
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The benefit is available to those who have one parent or guardian on a salary of over £50,100, however this category should be aware of the progressive tax paid on the benefit.
This means any income over £60,000 is taxed at 100 percent.
Child Benefit payments are usually issued every four weeks, hitting the bank accounts of Britons on a Monday or a Tuesday.
However, because of a yearly bank holiday which falls in May, people may be able to receive the payment from the government at an earlier date.
This year, the late May spring bank holiday falls on Monday, May 25.
As a consequence, Britons will not be able to receive any payments on this date.
If a parent or guardian was due to receive their payment on this date, they will now be entitled to receive it a few days earlier, on Friday, May 22.
This is because May 22 is the last working day before the bank holiday.
Due to the coronavirus pandemic, more Britons could find themselves entitled to the Child Benefit payment, when previously they could have been excluded.
The government has advised people to keep aware of their salary or income to see whether they could now receive the payments due to job losses or furloughing.
For those who have faced a reduction in their income, Child Benefit could prove a solution to a cash flow drop.
If earnings and profits of your household fall below £60,000 in the new 2020/21 tax year, you could be eligible for tax-free Child Benefit.
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This means a two-child family could stand to receive up to £1,819 per year in tax-free benefits.
But this can only be backdated for three months, so parents and guardians have been advised to act quickly.
Those who believe they are entitled have been told to use the CH2 form on the gov.uk website.
Only one person is permitted to claim Child Benefit for any dependent children.
The government has stated it is best for any parent who does not expect to be paying National Insurance contributions for the foreseeable future to make the application.
This is because Child Benefit claims can also provide non-working parents with National Insurance credits towards the State Pension, which would be forfeited if an earning parent were to claim.
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