If you have children, you may be able to get Child Tax Credit. At the time of writing, all families with children can claim Child Tax Credit if their income is no more than £58,000 a year (or up to £66,000 a year if you have a child under one year old). You don’t have to be the child’s parent to be eligible, but you must be the main person responsible for that child. You can get further information and an application pack from your local social security office, job centre or HM Revenue & Customs (HMRC) enquiry centre. You can also log on to the HMRC website at www.hmrc.gov.uk. There is a lot of useful information on state benefits and tax credits on the website www.direct.gov.uk/ MoneyTaxAndBenefits.
If you have been working and paying tax, and you then become unable to work for a length of time, you may be able to claim a tax rebate for part of the tax you have already paid. If you are currently working, check that your tax code is correct. You may be paying too much tax. Simply correcting your tax code may help you get more money in your wage packet. In the first instance, ask your employer to check your tax code for you. Then approach your local HMRC office. HMRC also publishes helpful leaflets on a wide range of tax matters, and it is worth looking at these to see if you can claim any other allowances.
If you are working from home, you can claim tax relief towards the cost of running your business, from stationery costs and telephone bills, to travel, advertising and equipment costs (such as a computer), so check with HMRC to make sure you are getting all your tax allowances. If you are self-employed and do not have an accountant, it would be worthwhile consulting one to make sure you are paying the right amount of tax and are not losing out on any tax allowances. Many accountants will offer a free initial consultation, so remember to ask for one before you go along, and make sure that the person you choose is a qualified chartered accountant. To find one near you, contact the Institute of Chartered Accountants, who will be able to give you a list.
When you meet the accountant, be sure to check his or her hourly rate for any future work, such as preparing an annual return to HMRC. You may well find that the time and tax savings involved more than justify the accountant’s fee. If there is anything you don’t understand in your meeting, don’t hesitate to ask for an explanation. You should feel comfortable with your accountant and able to seek clarification on any information that is presented to you. If you are not satisfied, shop around until you find an accountant to suit you.
