Tax credits

Are you entitled to any tax credits?

Tax credits are funds paid out by the government. Although they are administered by HM Revenue & Customs, these credits are not directly connected with the tax system or with how much tax you pay.

The three types of tax credit are:

Child Tax Credits (CTC)

CTC can be claimed by families with at least one child, and annual family income up to about £58,000. The amount of benefit is dependent on the number of children in the family, whether they have disabilities, and the total family income.

View this link for more detailed and up-to-date information on CTC.

Working Tax Credits (WTC)

WTC is a tax credit for people in paid work who are on a relatively low income and who work 16 or more hours per week (for couples, joint income), including those with a disability. It also includes support for the cost of eligible childcare (alongside payments of CTC). View this link for more detailed and up-to-date information on WTC.

Pension Tax Credits

Pension Tax credits are available to people aged 60 and over for people whose income is less than £174 per week for a single person and £255 per week for those with partners (only the person applying need be 60 or over, their partner can be younger). However from April 2010 the age at which people can get Pension credit will gradually rise to 65, in line with the increase in the State Pension age for women from 60 to 65.

View this link for more detailed and up-to-date information on Pension Tax credits.

It is important in some cases to consider the interplay between some Tax Credits and other aspects of the tax system in order to maximise the overall benefits to you and your family.

Call Mike Kirby or Clive Grinteron 01730 234500 to arrange a no obligation consultation to discuss how we can advise you on how to take advantage of the relationship between Tax Credits and other aspects of the tax system.

Useful links:
General information on tax credits on HMRC website
HMRC Tax credits questionnaire