Birmingham news Millions of families to get Child Benefit boost but critics slam tax rules MetiNews.Com

MetiNews.Com - The high income tax charge on child benefit penalises households where one parent is the main breadwinner

Birmingham news Millions of families to get Child Benefit boost but critics slam tax rules MetiNews.Com

MetiNews.Com - The high income tax charge on child benefit penalises households where one parent is the main breadwinner

Birmingham news  Millions of families to get Child Benefit boost but critics slam tax rules MetiNews.Com
23 February 2021 - 13:15

Breaking News ! Child benefit payments are to go up from April 2021 in line with inflation, the Government has confirmed. The payment is to increase to £21.15 per week for the eldest or only child, and £14 for any additional children. Those amounts represent a slight increase compared with the 2020/2021 rates of £21.05 and £13.95. This is an increase of 10p and 5p respectively per week and means the new monthly payments will be £84.60 for an eldest or only child and £56.00 for any additional children. Most other benefits are also going up from April - see the full list here. For Universal Credit, the standard allowance will also go up but the overall monthly payment could end up being less if the coronavirus top-up of £80 is not extended. Those receiving Child Benefit must also bear in mind that the payments can be taxed if income reaches a certain level. Read More Related Articles 'The welfare of staff and students is paramount' - Birmingham headteacher reacts to schools reopening The High Income Child Benefit Tax Charge means that if you or your partner earn more than £50,000, a tax is imposed on the benefit. The amount owed can be worked out using the Government's Child Benefit tax calculator. This is at a rate of 1 per cent for every £100 earned over £50,000. If over £60,000 is earned in a year, the whole amount must be repaid. Critics say these 'unfair' rules penalise households where one parent is the main breadwinner. This is because only one person can claim the benefit for a child and it is based on just the highest earner's salary rather than the overall family income, the Mirror reported. Read More Related Articles 150-place school expansion plan in Solihull to serve new housing estates Read More Related Articles School's new centre for emotional wellbeing named 'the Ark' in Wolverhampton For example, a family where one parent earns £50,000 and the other earns nothing would be immediately subject to the tax.

. Even more confusingly, a family where both parents earn £49,999 would get full child benefit, even though the family income is almost £100,000. Read More Related Articles 'The welfare of staff and students is paramount' - Birmingham headteacher reacts to schools reopening Read More Related Articles When every lockdown rule is set to lift across England after roadmap out of lockdown announcement If you're earning over the threshold, you will need to complete a self-assessment at the end of each tax year. HMRC will then calculate how much you owe, and bill you for the outstanding balance. Even though the money is returned, you'll still get a national insurance credit towards your state pension. If you earn above the threshold (£60,000), you can either take the benefit money and then pay it all back as extra income tax, or you can untick a box on the application form for a "zero rate" child benefit which means you won't receive anything. By officially opting out in this way, you'll still be able to claim the national insurance credits towards your state pension without actually getting any child benefit. Get email updates with the latest Coronavirus news It's a free and easy way to follow up-to-date developments on the lockdown restrictions, Government guidelines, shop and restaurant reopenings, track and trace initiatives, development of a vaccine and official details of the number of coronavirus deaths. It is delivered free of charge direct to your email inbox seven days a week, giving you all the news you need from across the region at your fingertips. How do I sign up? First just click on this link to our newsletter sign-up centre.  Once you're there, put your email address where it says at the top, then tick the Birmingham Daily News Updates box. There are other newsletters available if you want them as well. When you've made your choice, hit Save Changes button at the bottom. How to claim child benefit You are usually eligible for child benefit if you are responsible for a child under 16 - or under 20 if they stay in approved education or training - and live in the UK. It includes children who are adopted or fostered, and can even be paid when you have an informal arrangement to look after someone else's child. Eligibility rules are different if your child goes into hospital or care, or lives with someone else. Child benefit is stopped immediately if your child: starts paid work for 24 hours or more a week and is no longer in approved education or training starts an apprenticeship in England starts getting certain benefits in their own right, such as Income Support, Employment and Support Allowance or tax credits It can take six to 12 weeks to process a new claim (or longer if you’re new to the UK). Child benefit can be backdated for up to three months. To apply for the payment, you need to fill in and send off this child benefit claim form For further enquiries, the child benefit helpline can be contacted on 0300 200 3100 from 8am to 6pm, Monday to Friday.

Source = MetiNews.Com

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Birmingham news Millions of families to get Child Benefit boost but critics slam tax rules MetiNews.Com


Birmingham news Millions of families to get Child Benefit boost but critics slam tax rules MetiNews.Com


Birmingham news Millions of families to get Child Benefit boost but critics slam tax rules MetiNews.Com


Birmingham news Millions of families to get Child Benefit boost but critics slam tax rules MetiNews.Com

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