Link: Child tax credit is windfall for mums
New tax credits come into affect on 6 April 2003, and were announced in the 2002 Budget, replacing the existing Children’s Tax Credit scheme.
It provides relief to families with a combined income of up to £58,000 and is set to transfer up to £2bn from fathers to mothers.
However the CIOT said families needed to apply now to avoid the disappointment of late payment.
Francesca Lagerberg, chairman of the CIOT Personal Taxes Sub-Committee, said: ‘Many people are just becoming aware that they may be eligible for the new credits at a time in the year when Inland Revenue offices are at their busiest.’
Furthermore, the new legislation only allows for a three-month limit for back-dating any claims, unlike the Children’s Tax Credit which had a six year claim limit.
The CIOT also said 47 pages of accompanying notes was far too much for people to understand, while it was convinced that the Revenue would not be able to assist everyone who had difficulty completing their forms.