Question archive: tax credit

I currently live in the North of England where the cut off point for your earnings to still qualify for WFTC is £20,000 per annum, is this higher in the South? This is important as I will be paying out for childcare for 3 children.

The rate of WFTC depends on your level of earnings, not your location. In theory the credit payable in the North should be the same in the South.

You should be aware however that childcare expenses may increase the credit payable to you. I would imagine a childminder in the South is likely to charge you more than in the North. This discrepancy may result in a greater payment of WFTC.

I have two young children and would like to give up work. I currently have the childrens tax credit in with my tax allowances, would my partner be able to claim this if I gave up work and how would he go about doing this?

There is no problem in transferring the Children's Tax Credit to your husband so that he has it in his tax code. Simply write to your tax office, making sure that you include both of your National Insurance Numbers, explaining that you now wish him to have the full CTC.

I've just found out about Children's Tax Credit. My child was born last year and I'm the only partner working. Can I claim back from when she was born?

Yes, when your tax code is changed to accommodate the Children's Tax Credit, you should get your tax refund in your next pay period, assuming you are on PAYE.

This page was last reviewed on 07 April 2005.
The information may not reflect changes in legislation made after this date.

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