Year End Tax Review 2010/2011


Lead articles

Looking forward

This year, next year

Rate of change

Pension merry-go-round


Too much NIC

NIC and pensions

Company cars

Tax-free benefits

Childcare vouchers

Business - General

Time to incorporate?

Associated or not?

His and hers

Family bonus

Profit and loss

Show me the money

Can't pay, won't pay?

Turning back the clock

Business - VAT

Standard VAT or flat VAT?

VAT's up again

All Europeans now

A good start for VAT

Happy returns?


Top-up savings

Rainy day money

Capital Gains

Gains favoured

Splitting gains

A place in the country

Holiday lets reprieved


Family fortunes

Where there's a Will

Credits and debits

Benefit going

Piggy banks

Still trustworthy?


Penalty shoot-out

Going online

Paperwork, paperwork

Pay tax later

Opportunity knocks again


Give and save

Non-Domiciled People

Home and away


Interesting times

Credits and debits

Child Tax Credits (CTC) and Working Tax Credits (WTC) have now been around for several years. The system for rebating tax to people who need it has been criticised as over-complicated, and there have been examples of people being paid too much and then finding the Revenue pursuing them to get the money back. But in spite of all the bad press, it's still worth thinking about making a claim, particularly if you are couple where both of you work and you therefore pay childcare costs.

Mr Osborne has announced cutbacks to the amounts paid out in WTC and CTC for 2011/12. WTC support for childcare costs will be cut from 80% of qualifying costs up to £300pw to only 70%. The joint income level at which the basic CTC of £545 starts to be withdrawn will fall from £50,000 to £40,000. The "baby element" of CTC, which doubles the entitlement in the year a child is born, will be removed from April 2011.

If you have claimed either of these credits in the past, it's worth looking at how the changes will affect you.

Action Point!
Should you claim CTC/WTC?