Family Tax Planning
As a parent you may have claimed a tax allowance called the Children's Tax Credit on the Tax Return you completed for the tax year 2001/02. You may also be able to claim the same allowance at a slightly higher rate for 2002/03.

However you may also need to claim the new Child Tax Credit to be paid from 6th April 2003 that replaces the Children's Tax Credit on that date. Your claim for the new Child Tax Credit can be made online through the Tax Credits Website, or on a paper form obtained by ringing the tax credits line on: 0800 500 222. Your claim for child tax credit cannot be back dated for more that 3 months, so if you want the tax credit to apply to your family from the first possible day, you need to have applied by the 6th of july. The amount of tax credit you or your partener will recieve is dependant on the number of children in the family, the amount paid for child care, the number of hours worked by both parents, and the total family income. The basic amount of Child Tax credit is £545 per year, but families with combined incomes exceeding £50,000 will not be aligible to receive the basic amount.

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