3Spoken

January 15, 2007

Expecting a happy event? 70% tax payer? Have £500

Filed under: Benefits,Tax — NeilW @ 10:54 pm

Here’s something else you may not know.

The government will pay you £500 (tax free) if you are expecting a baby and your family is paying a 70% marginal tax rate. This is because it is available to anybody receiving Child Tax Credit where the claw back is still in operation. As shown in my previous article this can apply up to a relatively high level of income – particularly if you are paying for childcare.

So don’t be under the misapprehension that the Social Fund is only for those at the bottom of the income scale. According to the Office of National Statistics over 3/5ths of households have income levels at a level where the 70% tax rate operates. It’s definitely worth filling in a form (even if it does weigh in at 16 pages). Don’t delay either – your window of opportunity is only 3 months either side of the baby’s arrival.

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