Tax Credits Available to the Self Employed

I started my own business recently after relocating my family to London. Will my Child Tax Credit & Working Tax Credit rates increase, as my cost of living has increased dramatically, and I am paying childcare for two small children so I need all the financial help that is available?

1st December 2008

The rate of tax credits paid are fully dependent on your level of earnings, which means you wouldn’t receive an increase (or decrease) on the statutory rate depending on where in the country you live.

However, you did mention you are also incurring childcare expenses, which presumbably has increased in costs from your recent relocation. This increase may result in a greater payment of Working Tax Credit to meet the childcare costs for your two children, so ensure you let the Tax Credits helpline know that your circumstances have changed as soon as possible, as they will only backdate amounts for 3 months.

Council Tax Benefit may also be available, and we would recommend you check with your new local council, whether you meet certain criteria.

The Department of Work and Pensions produces information on a website www.direct.gov.uk which explains the claim process in more detail.

By Jo Nockels

Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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