A little-known tax credit
Jan 30, 2009
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Parents eligible for the little-known Children's Tax Credit Relief have until 31 January to claim, says Philip Scott on Thisismoney.co.uk. "It is suspected that tens of thousands... could be owed more than £1,000 each by HM Revenue & Customs." The Children's Tax Credit was available for two years; 2001-2002 and 2002-2003. For taxpayers entitled to the full relief (households with children under 16 between 6 April 2001 and 5 April 2003), it’s worth £529. For those with a child born in the 2002-2003 tax year, there's a further allowance of £520.
HMRC says that you can check whether you have received the relief if you hold any payslips or a P60 from 2002-2003, as your code will end in either 'H' or 'T'. If you are unsure, HMRC will check your position for free. You just need to fill in form 11CTC [pdf file] prior to 31 January and send it to your tax office. You won't necessarily qualify for the full amount though, the HMRC website warns. For every £3 you earned over the basic-rate income tax threshold (£29,900) in that tax year, you lose £2 of the relief.