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mca » Tax Credits

Tax Credits

MISSING OUT ON MONEY THAT IS RIGHTFULLY YOURS?

You could be entitled to tax credits, more than £6 billion in tax credits went unclaimed last year.  Read on to ensure you are getting what you are entitled to.

TAKE THE MCA TAX CREDIT TEST

Ask yourself these 3 simple questions:

Are you self employed or do you operate via a limited company ?

Do you have children under 20 who are still at School/College ?

Is your household income less than £42,000 ?

If you have answered yes to all three of these questions then you and your family are entitled to tax free income from HM Revenue & Customs (HMRC) and MCA Accountancy & Taxation Advisers would like to talk to you about maximising your entitlement as soon as possible.

The amount of money that you may be missing out on could be substantial.  Please look at an example of an actual clients claim:

Example:

Small business owner with a net profit of £19,500 and a wife with an employed salary of £10,000 per annum.  2 adults and 2 children in the household.

Standard Tax Credit Entitlement (2011/12)                                                           £545

Tax Credit Entitlement (Using MCA Tax Planning)            £6,182

This example represented is not unusual to a number of our clients that have benefited greatly from tax credit planning with MCA.

The example above illustrates that a family could be receiving £515.00 per month extra in tax free income.

WHAT ARE TAX CREDITS AND HOW DO I QUALIFY?

Working tax credit (WTC) and child tax credit (CTC) are benefits paid by HM Revenue & Customs (HMRC).

You can claim the CTC even if you and your partner are working – as long as your income is less than £42,000 a year. The amount you get will depend on how many children you have, how old they are and whether they have any disabilities.

The WTC is a payment to top up the earnings of working people on low incomes regardless of whether they have children. Extra amounts are payable if you have a disability, or if you work 30 hours or more a week and have child care costs.

WHAT IF I DON’T HAVE CHILDREN, HOW DO I QUALIFY FOR WORKING TAX CREDITS?

The WTC is complicated, but it comes down to how many hours a week you work and whether your income is ”low enough’.  Depending on your income, you may qualify if you work at least 16 hours a week or receiving disability benefits, or if you are over 50 and had been getting certain benefits for at least six months before you started work.  You may also qualify if you are 25 or more and you work 30 hours or more a week and are on a low income. Those over the age of 50 receiving benefits may be able to claim too.

HOW DO I CLAIM IF I LIVE WITH MY PARTNER BUT AM NOT MARRIED?

If you live together, you must make a joint claim. You claim both tax credits on the same form.

WHAT DO I NEED TO DO IF I WANT MCA TO LOOK INTO A CLAIM ?

Contact us on 01706 860255 or email rob@mca.ac and we will arrange an appointment to discuss your potential entitlement and answer any questions you may have.

You can discuss your situation and we can explain how our tax planning can benefit you.  We are a very transparent company and we will offer a free no obligation meeting, in this meeting we can explain how the planning works and you get to ask any questions.

WHAT WILL IT COST ME ?

On all our tax credit work we are instructed by the client on a no win no fee basis.  If we can increase your claim, or take a fresh claim on then we will agree a fee of 25%+VAT of the additional award.

For example:

If your current claim is £2,000 per annum and due to the tax planning we achieve a revised award of £3,500 per annum, then your net gain becomes £1,500 so therefore the  MCA fee would be £375+VAT per annum.

Note: Awards run for 2 years.

WHAT IF MY CIRCUMSTANCES CHANGE?

If your circumstances change it can affect the amount of money you should be getting and you need to contact us immediately and we will then inform the Tax Credit Office.

Some changes need to be reported within one month, such as leaving your job, while for others you must notify the office within three months; for example, when you have a baby.

CAN I GET MY CLAIM BACKDATED?

You can normally get CTC and WTC backdated only for a maximum of 93 days before the date you apply, it is therefore a matter of urgency that you register your claim asap.  MCA will do this for you if you instruct our services.

WHAT CHANGES TO TAX CREDITS WILL COME INTO EFFECT NEXT YEAR?

The Chancellor announced in his emergency Budget in June that CTCs would be withdrawn for families with a combined income of no more than £30,000, or possibly as low as £25,000 from April 2012. The baby element of the tax credit – worth an additional £545 a year – will also be abolished. While it is currently possible to backdate claims and certain changes of circumstances by three months, from April 2012 the backdating period will be one month only.

WHAT DO I DO NOW?

Contact us and we can discuss your situation, how the tax planning works and how you would benefit.

Contact us today and discuss if you could be one of the family’s missing out.