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Free money!

Jan 28, 2009, 03:54 AM
Authors : Allison
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Post date : Jan 28, 2009, 03:54 AM

Ah the chattering classes, the heartland of the UK – just give them a sniff of something for nothing and they are there.
The latest apparent freebie which these hardworking parents are getting excited about is the old children’s tax credit.
The emails are just flying around!
For example: ‘This is about a tax entitlement many of us should have claimed, but no one knew about to claim it. The Government owes us all the sum of £520.’
‘It's a disgrace that this rebate hasn't been advertised before and one can be sure it won't be.’
‘Apparently there's no catch – higher-rate taxpayers are eligible too.’
Err, yes and no.
As already mentioned, the ‘tax entitlement’ referred to is children’s tax credit. And yes, there probably are some people who should have claimed it, but haven’t.
But no, the ‘rebate’ was made public in that CTC was the precursor of the child element of tax credits and was available in 2001-02 and 2002-03.
Finally, yes and no: a few higher-rate taxpayers may be able to claim it, but where income exceeded £34,515 in the 2002-03 tax year, the CTC is restricted by £2 for every £3 of income chargeable at the higher rate. As a result taxpayers are unlikely to receive the credit if their income was more than £42,450.
Looks like the chattering classes miss out again.
Shame.


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