I just wanted to make you aware of the following in case you have not heard about them as yet:
There are 2 new UK tax credits available from 6 April 2003: Child Tax Credit (CTC) and working tax credit (WTC). They take the form of cash paid in to a bank account and do not affect your tax return.
CTC comprises of several elements, most of which are eliminated where annual income exceeds £15,000 (one child) or £20,000 (two children). Some elements will be due where income is £50,000. WTC will ususally not be payable where income exceeds £13,000.
Claims can only be backdated for 3 months, so if your income unexpectedly decreases during the year, you may find at the end of the year that you are entitled to claim, but have lost your entitlement for part of the year. You may consider making a protective claim by 5 July 2003 for 2003/04 to maximise any potential entitlement. You can find out if you qualify, and claim on line at
www.taxcredits.inlandrevenue.gov.uk or call the tax credits helpline on 0845 300 3900.
Most people with US filing requirement will have to include any credits as a US taxable income.
Let me know if you have any questions.
Helen
