A little-known tax credit
Parents eligible for the little-known Children’s Tax Credit Relief have until 31 January to claim. Find out if you qualify.
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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
Childcare costs drop 56% - but not for everyone
Childcare costs for under-threes have halved following the introduction of free childcare support last year - but some people still face higher costs
By Ruth Jackson-Kirby Published
-
Could Labour introduce a 2% wealth tax?
As the chancellor puts the final touches to next week’s Spring Statement, there are growing calls for a 2% wealth tax to be introduced. Campaigners say it would tackle economic inequality and raise billions of pounds in revenue
By Ruth Emery Published