Parents ignoring new children's tax credit.
The Inland Revenue has revealed an estimated 1.2 million people have yet to register for children’s tax credit – with less than six weeks until the deadline to register in time for the new tax year.
In order to register for the credit – effective from April – application forms must be submitted by the end of February.
The Revenue estimates five million people qualify, but it has only received 2.8 million applications – with one million people eligible but self-employed, so not required to apply.
A spokesman said this week: ‘We will be stepping up an advertising campaign to reiterate our message.’
The credit, part of government attempts to become family friendly – which has included a campaign launched by employment minister Margaret Hodge last year (above) to boost the recruitment of childcare staff – will be worth tax liability reductions of #442 to families. It replaces the married couples allowance, which rewarded couples with a #200 tax reduction.
More information on the children’s tax credit can be found at the Revenue’s site at www.inlandrevenue.gov.uk/ctc/index.htm.