Child benefits allowance scheme was designed by the government to support parents and their kids. A couple of years ago, child benefit provided universal benefits. First child of a family would get more cash allowance then each subsequent kid, but now this criterion has changed.
Rules for child benefits
- Your kids need to be under 16 years of age
- If they pursue education, then the benefit limits to the kids till 20 years
- Benefit allowance is paid monthly
- Money gets constrained, if the kid undertakes paid job for over 24 hours weekly
- Your annual income is taken into account for mean test
- The amount received will depend on your earnings and number of kids you have who qualify
A couple of years ago, Government passed a proposition that all those families who earn more than 50,000 pounds or more annually will need to taxes, if they don’t stop claiming benefits. So, if your annual income has the maximum limit of 50,000 pounds, then allowance is reduced. Benefits will purely depend on your income’s maximum limit. Tax system will be used to mean test the allowance rate.
Chaos due to changes in child benefits
As Government has started clawing back the child benefits allowances from millions of families earning 50,000 pounds and more, this has caused a chaos among ½ million parents, who are expected to get pushed into self-assessment tax system.
- Families having insufficient time for adapting this change could lose 2,500 pounds in a year for every 3rd kid.
- Parents of adopted and foster kids will also have to pay the taxes.
- Several non income earners could possibly lose their important state pension entitlements.
An application form needs to be filled and submitted. It takes 3 months and more for this process. However, you will be given the money for those months, if you get an approval on child benefit allowance.
If in the future, you get married or your child gets a job, then you will need to contact the child benefit allowance office and notify them. If you have any queries, you could also visit www.numbershelpline.co.uk to get answers.
Some of the most common queries are
- What relevant documents are needed?
- What happens if I move abroad?
- What happens if I may get a divorce? Who will be eligible for child benefit allowance?
- How to spend the child benefit allowance?
All of above and many more queries can be easily resolved by calling the child benefit helpline number.