The coronavirus (COVID-19) pandemic is having a devastating impact, affecting millions in terms of health, and sadly seeing many lose loved ones to the virus. The crisis is hitting people financially too, with millions of people seeing drops in income during the unprecedented times. This week, Martin Lewis shared some of his money tips during his ITV show.
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Broadcasting from his office in his home, Mr Lewis shared some “news you can use” with viewers.
Among his tips was the suggestion that some parents may now be able to claim Child Benefit, while they may previously not have been eligible to do so.
This is because they would have been affected by the High Income Child Benefit Charge (HICBC) in the past.
However, those who have seen their income drop in recent times, could mean that they’re taken below the threshold to pay some or all of the tax.
Mr Lewis said: “If you’re a parent and your income’s dropped, and you weren’t eligible for Child Benefit, check if you are now.
“If there’s an individual earner in the household earning over £60,000, you don’t get it.
“Between £50,000 and £60,000, and you don’t get all of it.
“So let’s say the highest earner in your household earns £60,000 but they’ve been put on furlough or they’ve had a big income drop – which is happening to many people – and that, over the year, on average, will drop you into eligibility for Child Benefit.”
Addressing those who may now be eligible, he continued: “Go and claim Child Benefit now. Claim your Child Benefit, you’ll be paid it.”
Some people may be concerned that their income will return to its former amount however, in the future.
Mr Lewis explained: “If you later on earn too much, you’ll just pay it back through the tax system.
“But, many people are now eligible for Child Benefit who weren’t before.”
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Child Benefit can be claimed if a person is responsible for bringing up a child who is under 16, or under 20 if they stay in approved education or training.
The payment is paid every four weeks, and there’s no limit as to how many children a person can claim for.
That said, only one person can get Child Benefit for a child.
If an individual or their partner earns more than £50,000, then they will have to pay back some of the Child Benefit in tax, and this is due to the HICBC.
There are two different Child Benefit rates, and the rate depends on who the allowance is for.
In the 2020 to 2021 tax year, the weekly rate is £21.05 for an eldest or only child.
Meanwhile, the rate is £13.95 per child for any additonal children.
The payment is usually paid every four weeks, on a Monday or Tuesday.
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