New Tax Credits

[PamT]

Has everyone applied for the new tax credits? They start in April and replace not only the existing WFTC and Disabled Persons Tax Credits but also the Children's Tax Credit. Currently the wage earner receives approximately £10 per week extra due to an adjustment of the tax code. This will stop in April and you will only get this payment if you apply for it. I think it will be paid to families earning anything up to about £58K. Families earning up to around £22K will also be entitled to additional money in Child Tax Credit or Working Tax Credit.

See www.inlandrevenue.gov.uk for more information. You can calculate your entitlement or apply on line.

And no, I don't work for them but I do think that everyone should get what they are entitled to. My form went in about a month ago

I applied on line and was told that we wouldn't get anything, even though we currently get WFTC and my income has dropped since that claim.

The trouble is that they are working from P60's for tax year 2000/01 - and at that time we had 2 incomes, now we only have one.

I did ring them up and they said to write to them in January explaining circumstances have changed - even though the application form asks for that information anyway. After a lot of arguing they finally agreed to give me an estimate of what I will be entitled to - and we will be £10 a week worse off than under the current rules

Anyway - enough of my woes - don't be put off if they say you are not entitled. If there has been any significant change to income in the last year, make sure you follow it up and get them to check the figures again.

We will actually come off a bit better than we currently do but I think the government have been a bit sneaky with the old Children's Tax Credit. They wrote to everyone who claimed child benefit when they first introduced the old CTC to give Mum/Dad a choice who claimed it but I bet there are still a lot of people who don't know about the new set up.

If you normally fill in a tax return, can you apply for the tax credit then for the previous year, or must you complete the new forms?
I mention this as I know I applied for something when I filled in this year's tax form (ds was born last tax year!) and just assumed I'd wait until next year to sort this new thing out. From what I've read I think our gain will be marginal anyway.
Thanks

Funnily enough, we had the forms in the post today - we haven't requested them, so I presumed they're sending them out to everyone who was claiming Children's Tax Credit or Working Families Tax Credit. Not particularly looking forward to filling it in though - the booklet of "notes" is about 50 pages long!
Good idea to alert people to this, PamT

Ermm sorry typo in my last message - they are using tax year 2001/02.

elliott - never had to fill in a tax return so not sure. Check out the website here and apply anyway to be on the safe side.

You have to do your own calculations too instead of providing them with the figures. eg. DH gets a van for work and also pays into a private pension scheme, so I had to look at the end figure on his P60, take off whatever they allowed for the pension, then add on the 'car benefit' that is stated on his P11D. The helpline told me that they will only randomly check a few claims and the rest will all go straight into the computer automatically. Its a bit scary really because some of it is very confusing. The guidance notes booklet put me off filling it in for about a month, but its gone now and I'm keeping my fingers crossed that I've done it right and they see fit to sending me loads of money

I know what you mean PamT.

I had to deduct an amount for each week I was paid SMP - but what with 'mummy brain' and the passing of time I haven't a clue what I was paid. And the so called 'helpline' was next to useless - they didn't even know that you had to make this deduction even though it was in the guidance notes.

Fingers crossed here too

The forms came through to DH yesterday and look like they might be a pain to fill in. I'm sure we should be entitled to something but not sure about the net effect compared to now. Will have to nag DH to fill them in - although he was breathing a sigh of relief that it wasn't a tax return - sure they don't come out at this time of the year anyway.

My husband rec`d his forms today, we found it abit confusing so I phoned them up. The man I spoke to asked me a few questions and given the info he reckons we should get about £375 a month for the children, plus still the child benefit! I only hope he is right as we deperately need it! Harry took early retirement to help bring up our trio, so we live on his merchant navy pension which is around £14,000 a year. It will cetainly make our lives alot easier.

These forms are a nightmare and I think they are deisgned to put people off applying and therefore save the government money (cynic, moi?).

I've discovered that if you only use childcare club, the properly licensed kind, in holidays and just get by in between, then you can't claim, but need to phone up the helpline just before every holiday and tell them your circumstances have changed. Then, when the holidays are over, you tell them they have changed again.

This is barking mad!!

I would imagine that any parent with school age children who uses childcare will suffer like this. The old WFTC never took varying childcare costs into consideration so at least the option to change your circumstances is an improvement on that. I don't work because the child care implications during school holidays would be too horrendous to contemplate. It does make you wonder how many people will ring up every holiday to claim a bit extra, it certainly isn't made easy for parents who need the extra help.

Managed, eventually, to complete this form online - though have input incorrect PAYE number, wouldn't accept the one on my P60 despite being issued by IR.

Anyway, stupid question time but - the figure that is calculated as approx credit - is this money I will actually GET (like WFTC) or will this be offset against income before tax to pay is calculated?

Tinker, I'm sure this is money you will actually get in your hot sticky little hand! (Have sent you an email btw).
I have been quoted as getting less than I currently do with WFTC. Does anyone know, will my husband - from whom I am separated - also be entitled to claim? I get the child benefit. Am awaiting my pack with dread, more bloody form filling!! And if you get Childcare tax credit, do you get Working tax credit and what's the difference!! Might try ringing the helpline later, but better do some work!

I am owed a full year of children's tax credit - I filled in the forms last november, sent the remaining documentation when I got it in July of this year. Still haven't had a penny!

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I'm not sure about this one, to claim the old WFTC you actually had to be working at least 15(?) hours per week and weren't allowed to have savings of more than £8000. I don't know if this applies to the new credits. Surely with the new system if your income is below '£x' then you should still be entitled to the children's tax credit part of the scheme. I think you will need to speak to someone in the know though, perhaps the helpline will be open again on Monday.

The child tax credit helpline number is 0845 300 3900. open 7 days a week 8-8.

The new way is that people without children can claim The Working Tax cedit. WTC replaces the Child tax cedit that used to be on the earners wages, The Children Tax cedit replaces the WFTC, which will go to the main carer (usually mum) Because we have three children, 2 with CP who gets DLA, I'll get approx £128p/w and hubby will get £12 extra in his wages, We were told that we won't be anyway worse off but we are. We have already sent our form off. all a bit confusing really

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Probably your best bet is to phone your own tax office and talk to your Inspector. Your affairs unfortunately sound more complicated than most. Your Inspector should at least be able to guide you through what income should be assessed though he will probably not be an expert as to how the rest of the calculation works.

As far as PIBs go I believe that any interest is fully taxable, but that any capital appreciation is not subject to tax. For Child Tax Credit capital gains/losses are not included. There are a number of different types of bond, with differing tax treatment, and so you will need to be very specific as to the details of the bond when you discuss this with the Inspector.

Working Families Tax Credit will not apply unless you actually work.

Has anyone received a reply on this, we filled our form out ages ago, and apart from a reminder to do it (if they spent less on all the advertising, mailshots etc. there would be more to share out) have heard nothing.

i would chase it up kk, got mine sorted within a 6 week period - filled it out online - they send something for me to sign and we sent it back and a month later - dusted!

I also filled mine in on line ages (Beg. of January)ago and rang them up yesterday to check. They said they had received it and had just discovered a query about my employer? I'm a SAHM!! they then said they would send the form for me to sign within the next 6 weeks (Speedy or what?) I then said April was only 3 weeks away, he said because I had made a claim I would still get the credits but they just needed me to sign the form. I don't know what would happen if for instance I was not eligable. So much for modern technology. But then this is the Tax man we are dealing with and he does have a reputation for dealing with things on a extra go slow basis. We shall see what result we get in the end I suppose but I fear more phone calls are on their way. I suppose us SAHM's have nothing better to do?????? NOT.

Looked at my last post to find out when the forms were sent - it was October and we filled them in pretty promptly. Should we have heard something by now?

I posted mine at the beg of Feb and received an acknowledgement note 3 weeks later. They have said that I won't hear anything else until the beginning of April though.