Child Tax Credit

The waste paper generated by this benefit since its introduction in April 2003 must be of staggering proportions by now.  This time around the postman has delivered at least 18 copies of the four page form TC602 in its various guises through the letterbox of one of our clients (his partner receives a duplicate copy of most of these, otherwise it would only be ten!).  Of these, 16 have been accompanied by the same 20 page A4 booklet (TC602 Notes) and so 15 have gone straight into the bin.  The other two came with a 32 page A4 booklet (TC603RD Notes).  I make that 212 sheets of A4 paper altogether!  Having wasted a fair amount of time responding to the Inland Revenue, their latest set of TC603 forms advise that he has been overpaid in 2004/2005 and has also already been overpaid in 2005/2006.  The calculations shown on the form are very confusing as they do not appear in a logical order. The only comfort is that they are not demanding a repayment now but intend to deduct it from any benefit payable in 2006/2007.

Our advice to anyone whose earnings are at the higher end of the scale, eg between £50,000 and £60,000, is that they should consider whether the relatively small benefit subsequently due is worth the time spent liaising with the Inland Revenue.