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Tax Credit e-bulletin 12 - Budget Special
In this edition...

About this e-bulletin
News round-up
Reminders
Useful resources for you
Useful resources for your clients
One Parent Families mission statement
Disclaimer
About this e-bulletin

We have produced this bulletin for those who have attended or will be attending our Lone Parents Tax Credits course, and for others who work with lone parents and are interested in tax credits.



You can read articles from previous Tax Credit e-bulletins on our website at www.oneparentfamilies.org.uk/taxcredits.



To help us improve the bulletin in future and make it more useful for you we would appreciate your feedback by completing this form - it will only take a minute. Your feedback can help us to get future funding to continue to provide free information and training to those who help and advise lone parents.

News round-up

The Budget announced a number of changes in tax credits - both in the rates and the rules. Most of these don't come in until April 2008, but there are some happening from this April. Here we set out what changes are happening when.



Changes from April 2007
  • From April 2007 there will be a four-week run-on of Working Tax Credit. This means that people will remain entitled to Working Tax Credit, including the childcare element, for four weeks after the date on which they stop work.
  • The Budget confirmed that the deadline for renewals of tax credits will be the 31st of July.


View or download tax credit and social security benefit rates for 2007/08.



Changes from April 2008
  • The income threshold for Working Tax Credit, below which you receive the maximum amount of tax credits, will increase by £1,200 to £6,420 a year.

  • The withdrawal rate for tax credits for those earning below £50,000 will increase from 37 per cent to 39 per cent. This means that, for every additional pound you earn above the threshold (see above), your tax credits will now be reduced by 39 pence rather than 37 pence.

  • The child element of Child Tax Credit will rise to £2,080 a year (at present it is £1,765).


Reminders

  • The deadline for renewing claims in 2007 will be 31 July.

  • In some circumstances, claimants can request that HMRC does not recover overpayments. It is always worthwhile disputing these decisions, as many revised decisions are made in favour of the claimant. HMRC will also suspend recovery of the overpayment while it makes its decision.

  • Women whose baby is due on or after 1 April 2007 (even if the baby is born before this date) will be entitled to 39 weeks of any Statutory Maternity Pay or Maternity Allowance they qualify for. They will be treated as being in full-time paid work for Working Tax Credit purposes throughout the 39 weeks while they are claiming these benefits. Find out more about changes to maternity rights.

  • Remember that tax credit claimants may be entitled to the following 'passported' benefits: Sure Start Maternity Grant, Social Fund Funeral Expenses Payment, free school meals, health benefits and Healthy Start vouchers.


Useful resources for you

The Lone Parent Handbook is a must for anyone who works with lone parents. This comprehensive guide is a one-stop information source on all the issues affecting those who are parenting alone, including benefits and tax credits, maintenance and the CSA, housing, family law, funding for adult education, childcare and children's education. Priced at only £35, this guide will prove invaluable.



The Young Mum's Guide is an upbeat magazine that is informative, easy to read and, most of all, accessible and interesting to young mums. This new edition is packed with all the vital information they need, including the following sections: Telling everyone, Staying healthy, Finding support, Your rights while pregnant, Having the baby, Financial help, Childcare and Young dads. The guide costs £5, and further discounts are available for purchases of 10 or more copies.



If you would like further information about these or any other of our publications please call 020 7428 5783 or email rosie@oneparentfamilies.org.uk.





Websites



www.oneparentfamilies.org.uk/advisers



www.dwp.gov.uk for information about Social Security benefits, including recent changes.



www.hmrc.gov.uk for information and leaflets about tax credits, National Insurance and tax.



www.rightsnet.org.uk website for welfare rights advisers includes latest news stories and discussions on tax credits and other welfare benefits.



www.taxaid.org.uk for information and advice about tax and tax credits.



www.litrg.org.uk information on tax and tax credits from the Low Incomes Tax Reform Group, including information on how to challenge a tax credit overpayment.

Useful resources for your clients

FREE Lone Parent Membership to One Parent Families

Join us today to make change happen



Lone Parent Helpline: 0800 018 5026

Free information for lone parents on a variety of issues including: maintenance, tax credits, benefits, work, education, legal rights, childcare and holidays. Also information about other organisations and local groups who may be able to help.

  • Websites


www.dwp.gov.uk For information about Social Security benefits, including recent changes.



www.hmrc.gov.uk For information and leaflets about tax credits, National Insurance and Tax.



www.adviceguide.org.uk for information from Citizen’s Advice on a range of issues including a downloadable factsheet Overpayment of tax credits (PDF, 54 KB).

  • HMRC and Department for Work and Pensions helplines


Child Tax Credit and Working Tax Credit Helpline:

Tel: 0845 300 3900

Textphone 0845 300 3909



Call for information and an application pack. Lines are open 8.00am-8.00pm 7 days a week.





Department for Work and Pensions:

Tel: (020) 7712 2171.



For general enquiries or contact your local office (see Jobcentre Plus or Department for Work and Pensions in your local telephone directory).





Benefit Enquiry Line for people with disabilities and their carers:

Tel: 0800 882200 (freephone)

Free Textphone: 0800 243355.

One Parent Families mission statement

One Parent Families believes we can build a fairer society for all families, in which lone parents and their children are not disadvantaged and do not suffer from poverty, isolation, or social exclusion. One Parent Families full Mission Statement

Disclaimer

Every effort is made to ensure that the information contained in the National Council for One Parent Families' Tax Credit e-Bulletin and web site is accurate and up to date at the time of publishing. However, please be aware that things do change, and seek further advice if in any doubt. We cannot accept responsibility for services provided by the organisations listed or for any changes which have occurred after the date of publishing.



This bulletin contains links to websites that are not owned by One Parent Families. These sites are not under our control and we are not responsible in any way for any of their contents.



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