Tax Credits

One of the “safety nets” that his been in existence for a number of years is the Working and Children’s Tax Credit system. However, we are constantly surprised about the number of new clients that we speak to who are either unaware of thus system, or don’t think that it applies to them.

The amounts of credit that families can obtain, quite legitimately, from HM Revenue and Customs are extremely significant. We have a number of clients whose entitlement can amount to figures of in excess of £7,500 a year, in particular circumstances.

The vital thing with Tax Credits is not to delay if you think you are entitled to receive them. One of the most common areas where people don’t register a claim is when a first child is born. There does not seem to be any automatic method of new parents being notified that they may be eligible for these Credits, and it is certainly a complexly different system for the Child Benefit system that does seem to automatically fall into place after the birth of a child.

One other common comment from clients is that they have been overpaid by HMRC for Tax Credits in the past, and have therefore not bothered to let the tax office have their annual income figures in later years. This certainly would not seem to be prudent, as if you do not notify HMRC within certain deadlines, then your claim for a particular year will be missed, and cannot be back-dated

The moral is, if in doubt, contact HMRC, rather than miss out!

For any discussions on these points, or other matters, please call either Jeremy Fozzard or Mark Williams

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