TaxPersonal TaxParents ignoring children’s tax credit

Parents ignoring 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 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

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