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Tax credits increase

The basic element Working Tax Credit payment has been increased from an expected £1,995 to £3,040 for the 2020-21 tax year that commenced 6 April 2020. This is part of a package of measures to help support families coping with the Coronavirus outbreak.

This increase of £1,040 is an increase equivalent to up to £86.67 per month for one year from 6 April 2020. The actual amount that Working Tax Credits recipients will receive depends on their circumstances, including their level of household income.

The government had previously confirmed that from 6 April 2020, the child benefit rates, and other tax credits rates and thresholds would be increased in line with the Consumer Prices Index (CPI), resulting in a 1.7% increase. For example, the child benefit rates for the only or eldest child in a family increased to £21.05 and the weekly rate for all other children to £13.95.

These changes were announced before the Coronavirus outbreak and represented the first increases in most rates since 2016. During this period, most working-age benefits (except for disability and carer’s benefits) were held at their 2015-16 cash value.

If you claim Working Tax Credits or receive any other benefits such as Child Tax Credits, Child Benefit or Guardian’s allowance then the increased payments should be automatically applied.

Source: HM Revenue & Customs Tue, 14 Apr 2020 05:00:00 +0100

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Some accountancy websites also provide pages and pages of tax information, helpsheets, etc. We prefer to give clients personally tailored advice. So, if you want details of tax rates and allowances just go to the HMRC website on which you should find what you’re looking for. If you need more individual advice please contact us.

Below are links to websites you may find of interest, but as we like to support our local community and clients, we have included links to websites that may be of interest:

HMRC
FT
BBC
VEALE WASBROUGH VIZARDS
CESP
PRACTICE INDEX
SIMCOMM ACADEMY

More Local:
FOOTPLATE EXPERIENCE
ANGLEBURY PRESS
OFFCAMBER.CO.UK