Reckonable Income used for Child Benefit

Your reckonable income is normally the total income for IOM tax purposes you and your partner (if you have a partner) added together had in the relevant income tax year.

By 'partner' we mean the person you are married to or your civil partner or someone you live with as if you were married to them or they were your civil partner. Income for IOM tax purposes is income before deducting any tax allowances or reliefs.

The ‘relevant income tax year’ is normally the tax year before the tax year immediately before the period for which entitlement to Child Benefit is being considered. So, when assessing entitlement to Child Benefit for any week in the 2026/27 tax year the relevant income tax year is normally the 2024/2025 tax year.

A tax year begins on 6 April and ends on 5 April the following year.

If you or your partner did not have your income assessed by the Isle of Man Assessor of Income Tax in the relevant income tax year, your Child Benefit entitlement will normally be assessed based on what you think your income, or you and your partner’s income combined, will be in the current income tax year.

Also, if your reckonable income, or if you have a partner your total reckonable income, has:

• Reduced - or is likely to reduce - by at least 20% compared to what it was in the relevant income tax year, or
  
  
• Has reduced - or is likely to reduce - to less than £60,000 in the current income tax year

You may be eligible to apply to have your child benefit entitlement assessed based on what you think your income - or if you have a partner, your income and your partner’s income combined - will be in the current income tax year, instead of the relevant income tax year. Contact us (see below) if you want us to use predicted current year income rather than assessed income when calculating your reckonable income.

Certain employment termination payments and lump sum payments of deferred State pensions are ignored in calculating your reckonable income. Contact us (see below) if you want us to disregard any of those payments.

If you were not entitled to Child Benefit at the end of the 2025-26 tax year because your income was too high in the relevant income tax year you should claim Child Benefit again if you think you might qualify now. We’ll normally determine your Child Benefit entitlement based on the amount of income you, and your partner (if you have a partner) were assessed as having for tax purposes in 2024-25. Please make a new claim using Form CH2.