Furloughed parents ‘may be missing out on benefits’

Struggling parents who have seen their income hit by the coronavirus may be missing out on benefits they are now be entitled to, according to a Sutton Coldfield financial expert.

Mike Jordan (pictured), who has been a financial advisor for more than 25 years, says some parents who have been furloughed by their employers may not realise they can now claim Child Benefit.

“The current crisis has seen many people being furloughed and some losing their jobs,” Mike said, “but there will be some whose income previously disqualified them from receiving Child Benefit – because it was more than £60,000 – who will now be expecting to earn less in this tax year.

“They may not realise it, but for those parents, it would be worthwhile looking at claiming Child Benefit again for the current tax year.

“Incomes have been affected so much by the lockdown, and there have been a lot of measures announced to help people deal with it, but it’s easy to overlook existing things like Child Benefit. In the current climate, every little helps.”

Since 2013, Child Benefit has been affected by an individual’s income, or their partner’s income. Once either of these incomes reaches £50,000, the amount of Child Benefit received starts to be reduced by one per cent for every £100 earned over £50,000.

However, once one of these incomes reaches £60,000, the benefit is removed completely. As a result, many people no longer bother to claim Child Benefit because their income disqualifies them from it.

“Child Benefit can only be backdated three months and so, if you’re not currently claiming but your income is likely to fall below £60,000 for this tax year, it would make sense to submit a claim as soon as possible,” explained Mike, whose business celebrates its 25th anniversary this year.

Mike, whose business Jordan Financial Management is based in the historic Guildhall opposite Sutton Coldfield Fire Station, added that it is also possible to make pension contributions to bring income below £50,000 for the purposes of assessing income for Child Benefit, allowing parents to still claim while strengthening their pension pot.

To make a claim for Child Benefit, submit a CH2 form, which can be found on the government website here.

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