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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If you only have one child, that's £1,100 you could be entitled to.

This is paid directly into your bank account, usually every four weeks.

You normally qualify for the benefit if you’re responsible for a child under 16 - or under 20 if they stay in approved education or training - and you live in the UK.

Parents can claim regardless of whether they work or not, but if you or your partner earn between £50,000 and £60,000 a year, you get hit with a tax charge which reduces the amount you get under the benefit.

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.

Robert Salter, an employment tax director at the firm said: "With many employees being furloughed on reduced salaries and the self-employed subject to income losses, many families who have historically opted out of child benefit may now become entitled to child benefit again – whether in full or in part."

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.

"So, unless they are careful, many families could lose money they are validly entitled to needlessly."

How do I claim child benefit?

How to claim child benefit depends on a few factors:

• Don't currently get child benefit? You can claim by completing an or by printing it off and posting it.
• Claim child benefit for the NICs but opt out of getting any cash due to the high income tax charge? You can restart your benefit claim if you're now eligible for the cash by filling in an or by contacting the .
• Already claim child benefit but get a reduced amount due to the high income tax charge? If your income has changed, use the to work out how much in charges, if any, you now need to pay. You don't need to contact HMRC yet as it depends on your earnings over a full tax year and you only pay the charge once a year. If it transpires you still need to pay a charge, you need to ensure you register for self-assessment by October 5, 2020, file a self-assessment tax return online by January 31, 2021, and pay what you owe each year.

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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.