Tax credits?

Question

I am just interested to know when tax credits were introduced, what was in place before then, and are they a permanent fixture or can they be taken away again?
I couldnt survive without then as my partner is on a very low wage I am a nearly full time mum and without them we wouldnt beable to pay any bills or buy food, or do anything. Our wages without tax credits barely covers the rent. So I am scared they will be taken away.

I get both working tax and child tax credits.
And the thing I am interested in most is what did people do before tax credits were invented?

In answer to people talking about housing benefit etc, I am not on that low an income to claim HB and Counciltaxbenefit but low enough so that I defenitely couldnt' survive without tax credits.
All in all my income is around 9000 without tax credits and I get 5400 a year in tax credits.

Answer 1

Tax credits, as they are now CTC and WTC (child tax and working tax) were launched in April 2003, previous to that had been the WFTC (working families tax credit)

As with any Government policy, the next Government could easily remove it altogether, or replace and modify it, perhaps an annual lump sum.

It is one of the benefits that the majority on the UK can claim, and over the next years (if it is kept) is likely to take a larger role in benefit payments.

As long as you fill in your renewal, sign your awards when they need it, let them know of ALL your changes, moving house, new hours, new job, new partner, as soon as it happens, you should end up alright.

Answer 2

I believe you are talking about the Working Families' Tax Credit/Child (Children's) Tax credit?

Working Families' Tax Credit (WFTC) replaced Family Credit (FC) from 5th October 1999. The tax relief, Children's Tax Credit, was available for two years before becoming the Child Tax Credit. It began on 6 April 2001 Before this tax credit a working person with a child under the age of 16 had a different tax code and just paid less income tax.

Even though I have no entitlement to it I too think it is brilliant and when it works properly makes a real difference to so many people. One of the few good things our current government has introduced but also something that gets very little positive press.

I work with benefits and I hope you don't mind me adding this but if you have a low family income it is quite possible that you may still be entitled to some housing benefit. I don't know if you have already applied but if you haven't it's worth a go. The worst that can happen is they say no. A lot of people don't realise you can still claim this benefit when you (or your partner) are working.

Anyway I am glad it has made a difference to your life and it's great to hear some good news stories.

Take care and thanks for the question.

Additional info:
The WFTC is not due for revision at this point but who knows what the next government will put in place?

Answer 3

child tax credit and working tax credit in the forms we know them now were introduced around 2003. before this there were some similar tax reliefs for families on low incomes (working families tax credit [WFTC]) but the forms and claiming process were more complicated

despite high media attention to problems with people's claims (in particular over-payments), i think the inland revenue (now hmrc) deal very well with the tax credits system.

as you rightly point out many low income families just would not survive without them! it is for this reason that i think they will be here for a long time to come, even with a change in political parties - i don't see how they could withdraw them altogether now.

Answer 4

The introduction date for each tax credit varies. While some credits, like the credit for purchasing hybrid vehicles, only lasts for a certain number of year. Many other credits have remained for a while like the Earned Income Credit. Generally speaking, when the IRS eliminates a credit, they usually introduce another one.

Answer 5

yes i noticed this too! What did we do without them??? untill recently i worked full time as did my hubby and we just about survived till tax credits came then we....just about survived, i since split with him and now alone on benefits and without tax credits i'd be buggered! whats more they never get it right!!! if they'll stay i dont know but i know friends who have been on income support for a very long time (before tax credits) and they get a lump sum for themselves and their kids, myself however get £54 income support for myself then tax credit pay for my 3 kids!!!!?????my friends do not get tax credits very confused and worried like yourself and it makes u wonder what did they take away in order for t/c to take over ???without it we'd die of starvation be homeless and bankrupt? live for today and bugger the rest is how i survive xxxx

Answer 6

I don't think you need to worry yet. I think they came in September 2002. As far as I am aware the children's tax credit which I believe is what you are talking about (what I get!) isn't due up for renewal yet! Keep doing everything they say and claim everything you are entitled to.

Answer 7

i like yourself need tax credits to survive they are inplace and are here to stay, the website below will help you and give you information.
if you are entitled to any other benefits due to your low income i would suggest you contact ur local authority benefits office who may be able to advise you on a rebate for rent, council tax etc

good luck xx

Answer 8

Yes.