According to recent publicity, families and individuals claiming tax credits can shortly expect to receive further forms for completion in respect of income for the year ended 5 April 2004. As many people will not be in a position to calculate the taxable income for 2003/04 it will be necessary to enter estimated income details on the form pending receipt of actual details, therefore, people claiming tax credits must ensure that they complete their Returns for 2003/04 as soon as possible.

Clients will recall, that to receive tax credits the recipient must be over 16 years old and live in the UK. Couples must make the claim together and the claim is made upon their joint income. Any couples whose joint income from all sources is less than £58,000 should benefit.

CHILD TAX CREDIT
In order to claim for the child tax credit it is necessary to have one qualifying individual who need not be in employment. The claim is made up of three sections, the family element which is paid for at least for one qualifying child set at an amount of £545 irrespective of the number of children that may qualify. The child element is given for each qualifying child at a rate of £1,445. The disability element is again given for each child those receiving a disability living allowance for the child.

WORKING TAX CREDIT
In order to qualify for the working tax credit the claimant has to be over 16 years old, either employed or self employed and usually work at least 16 hours per week, the work is to be expected to last for at least four weeks, and the claimant must be responsible for at least one child; or the claimant aged over 25 and working at least 30 hours per week in which case it is not necessary to have any qualifying children.

The composition of the working tax credit is made up of a basic element which is paid to anyone who meets the conditions, a lone parent element or a couples element, the 30 hour element for people who work 30 hours;; per week and a disability element. In addition, it is possible to claim a child care element if the child is placed with an approved child care provider and the claimant works at least 16 hours per week.

Please note that for joint incomes over and approximately above £10,000 the benefits are scaled back by approximately 37p for each £1 of joint income over the threshold.
Claims need to be made on form TC600 which can be obtained from the Revenue (0845 302 1477) or via the Revenue web site.

There is to be no change to company car legislation in 2004/05. Cars are taxed at between 15% to 35% of the list price depending on the level of the C02 Emissions.

Car fuel benefit is charged at a notional "price" of £14,400 applied at the same percentage as applies to the car.

New legislation has been introduced in respect of company owned vans available for private use. From 6 April 2006 vans will no longer be charged at £500 or £350 depending on age, but will be subject to a scale charge of £3,000 for unrestricted private use, with an additional charge of £500 where the employer provides petrol.

The current scale charges are: 

2. MILEAGE CLAIMS
The mileage rates claimable for the use of your own vehicle have not changed since the previous year are: