HMRC highlights benefits of WTC

Date: 6th October 2009

Many Britons are failing to take advantage of the tax breaks that are available to them, HM Revenue & Customs (HMRC) has said.

The tax authority highlighted Working Tax Credit (WTC) as an example of a neglected benefit, with those entitled to it who do not claim missing out on an average £1,600 per year.

WTC is targeted for people who are in work but get by on comparatively low incomes.

Unlike other tax breaks, having children is not required by HMRC.

Stephen Timms, financial secretary to the treasury, commented: "Tax credits are already benefiting hundreds of thousands of families without children.

"We recognise that these are challenging times and [WTCs] are there to help. I would urge anyone who thinks they might be entitled to this money to go on-line and find out for sure."

Potential beneficiaries of WTC are likely to have increased in number recently, due to the increasingly difficult conditions in the UK labour market.

Unemployment is at a 14-year high, while other workers have experienced pay freezes or cuts, or have been forced to take on lower-paying jobs than before.