Have you reviewed your finances ahead of the new tax year?
Families across the UK have faced so many changes in the past year compared to what we would have expected that, at times it can be hard to keep up.
Changes to working patterns, incomes, having children out of school for long periods of time continue to have an impact on the lives of families, so it is more important than ever to review your financial position and priorities for the year ahead.
If you are claiming Tax Credits have your circumstances changed since April 2020?
If so, and your overall income has changed since last year, you must ensure that you inform Tax Credits to ensure that you are not being over or underpaid. If there is a rise or fall in your household income of more than £2,500 reporting your income may result in a change in your award within this tax year.
If you are using or planning to use registered childcare make sure you explore all options regarding help towards your childcare costs. There are currently four forms of help with childcare costs, depending upon your circumstances and household income: Tax Credits, Universal Credit, Tax Free Childcare and Childcare Vouchers.
National Living and Minimum Wage
On a positive note, the National Living Wage is set to increase from April 2021, and will now also include 23 and 24 year olds. The new hourly rate for those aged 23 and above is up 2.2% to £8.91. The National Minimum Wage for 21 and 22 year olds is up 2.0% to £8.36, while for 18 to 20 year olds it is up 1.7% to £6.56.
For free, impartial and confidential advice on what support your family may be entitled to, please call our Family Benefits Advice Service on 0800 028 3008 or check out our online resources at www.employersforchildcare.org.