Tag Archives: tax credits

Childcare Schemes

The Government are introducing two new Childcare schemes within 2017; Tax-Free Childcare and 30 hours free childcare. Through a single online application service called The Childcare Service you can apply for either or both of these schemes, .

There are differing criteria for each scheme, and while the two new schemes can be used alongside each other, there are certain other schemes or benefits which they are not compatible with. To qualify for the schemes, both parents must be in work and earning on average, at least £115 per week but not more than £100,000 per year.

Tax-Free Childcare
This scheme works by utilising a childcare account. Provided you qualify for the scheme a childcare account will be set-up for you and for every £8 you pay into the account the government will pay an additional £2 on top. The total top-up amount per child is upto £2,000 per year.

You cannot sign up for Tax-Free Childcare if you are using childcare vouchers, or in receipt of Universal Credit or tax credits.

In order to pay your childcare provider using your childcare account your provider must also be registered within the scheme.

30 Hours Free Childcare
From September 2017, working parents of 3-4 year olds may be entitled to an extra 15 hours of free childcare per week. Every 3-4 year old in England is already entitled to 15hrs a week, however under this new scheme the total hours can be extended to 30hrs per week.

Tax Credits Renewal 2016

Deadline Day

The deadline for Tax Credits Renewal is fast approaching! Renewals must be completed and returned to H M Revenue & Customs by 31 July 2016 so if you haven’t done so already, now is a good time to tick this off the list.

If you miss the deadline your tax credits payments will stop.

In a change to the renewal process, some claimants may find that they do not need to actively renew their tax credits as those not requiring any changes will be renewed automatically.

How do I know whether to renew or not?

If your renewal pack has a red line across the first page and states ‘reply now’ then you must renew your tax credits online or via phone/post.

If your renewal pack states ‘check now’ then you should check all the details within your renewal pack, and provided there are no changes required you will not need to do anything and your claim will be renewed automatically.

If anything is incorrect, you must tell HMRC by 31st July 2016 else payments can stop and fines be imposed. As with the renewal, you can notify of changes changes to your tax credits online or via phone/post.

Self Employed

If you are self-employed, you may not yet have completed your Tax Return for the year ended 5 April 2016 so you may have to provide estimated figures. Remember to provide actual figures by as soon as possible, as your income level will affect the amount of tax credits you receive.

For the self-employed, remember that there are other reliefs available also, for example, if you have self-employed losses you can offset these against other income and also carry forward the balance to set against any future profits for Tax Credits purposes.

If you need any help with your Tax Credits renewal, or if you think you may be entitled to Tax Credits but are not currently claiming them, please contact Lydia Williams  at Lydia.williams@kelsallsteele.co.uk or one of the team on 01872 271655.

Tax Credits – Time to Act

It’s that time of the year again when thousands of us receive Tax Credits renewal packs through our door. The deadline for completing these and returning them to H M Revenue & Customs is 31 July 2015 so if you haven’t already, it’s definitely a good idea to get this job ticked off the list as soon as possible. If you miss the deadline your tax credits payments will stop.

Some people are able to renew tax credits online, providing they have no changes to report but many will need to renew by phone or by post. You must renew by phone if you don’t receive your renewal pack by 30 June 2015.

It’s important to check through your Annual Review form carefully to make sure your circumstances are still the same. You then keep this form for your records and only return the Annual Declaration to HMRC.

You should also have received help notes which explain what needs to be entered in each box on the Annual Declaration. These also contain workings sheets which are very useful, for example, in the working sheet for ‘other income’ HMRC confirm that the first £300 of other income does not need to be declared. You are also able to deduct gift-aid payments and personal pension contributions from your employed or self-employed income.

If you are self-employed, you may not yet have completed your Tax Return for the year ended 5 April 2015 so you may have to enter estimated figures. Remember to provide actual figures by 31 January 2016 to ensure that you are paid the correct amount.

For the self-employed, remember that there are other reliefs available also, for example, if you have self-employed losses you can offset these against other income and also carry forward the balance to set against any future profits for Tax Credits purposes.

If you need any help completing your Tax Credits renewal form, or if you think you may be entitled to Tax Credits but are not currently claiming them, please contact Lydia Williams  at Lydia.williams@kelsallsteele.co.uk or one of the team on 01872 271655.