If you have not completed a claim form for the new Child Tax Credit but have a child under 16 years old (or under 19 and still in full-time, non-advanced education) please contact us as soon as possible to ensure your Tax Credit Claim can be maximised.

Remember, this tax credit cannot be claimed on a Tax Return and the claim can only be backdated by 3 months. For a claim to take effect from 6 April 2004 the claim must therefore be submitted by Tuesday 6 July 2004.

If last year’s income is above the claim limit (no Tax Credit will be paid initially) it may be worth putting in a protective claim in case gross income for the tax year ended 5 April 2005 is below the limit. This will enable the full year’s Tax Credit to be paid.

If the Inland Revenue make an adjustment to a taxpayers Self Assessment following an enquiry any Tax Credit claim for that year may be adjusted accordingly. An uplift in profits following a tax enquiry could therefore not only increase tax, national insurance, penalties and interest charges but also reduce the amount of a Tax Credit award.

If you would like help in completing your Tax Credit claim or have received notification of an Inland Revenue enquiry into your tax affairs, please contact us as soon as possible.