Tax Credits – apply now to secure benefits

In order to qualify for a full year’s Tax Credit claim for 2012-13 your application needs to be made before 6 July 2012. This is because HMRC will not back date an application by more than three months.

Based on your past income levels you may be of the opinion that an application would produce no cash benefit. However, your circumstances may change. For example if you are self-employed you may suffer a downturn in trade that you cannot foresee or you may be able to claim for a significant investment in plant or equipment and reduce your taxable profits accordingly.

 

Applying in the April-July 2012 window will secure your rights to Tax Credits for 2012-13. Even if the initial assessment reveals that no Tax Credit payments are due to you, should your circumstances change you can ask for the assessment to be re-evaluated.

 

Please call if you would like assistance in making a claim.

HMRC have apoloised after sending out misleading letters regarding tax credits.

The letters said the maximum income for a family to be eligible for the benefit will be £26,000 from 6 April 2012.

That figure is broadly correct for a household with one child but the threshold rises for those with more. Families with two children will be entitled to credits if the annual family income is less than around £32,200.

 

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