The last article mentioned that the UK inflation rate has reached a new high , and the cost of living and prices have become a headache for people.
In fact, in addition to our own response to rising prices by reducing our daily spending, the government has re-emphasized some overlooked perks for people to ease the cost of living crisis.
Child Benefit
The Child Tax Credit is paid to people with children and is paid in addition to Child Benefit and Child Supplement – as long as you have legal residency status and you don’t need to work to get it.
You can apply for Child Benefit directly if you have children in your household who are:
—— under 16
—— under the age of 20 if they remain in approved education or training
Worth noting: Only one person can receive Child Benefit for a child. Paid every four weeks, there is no limit to the number of children you can apply for.
If your (or your partner’s) personal income exceeds £50,000, you may have to pay back part of your child benefit.
Child Benefit Payment Rates 2022/23
There are two weekly child benefit rates:
Firstborn or only child – £21.80
Extra child – £14.45
Guardian allowance rate:
Weekly rate of Guardian’s Allowance – £18.55
Tax-Free Childcare
Working parents can get up to £500 every three months (up to £2,000 a year) to help them pay for childcare until nine months after their 11th birthday.
If the child has a disability, up to £1,000 every three months until nine months after their 16th birthday (up to £4,000 per year).
To qualify for tax-free child care, you (or your partner, if you have one) must have a National insurance number and at least one of the following:
– British or Irish Citizenship
– Settled or pre-settled status, or you have applied and are awaiting a decision.
– Get permission for public funds – your UK resident letter will let you know if you are unable to do so.
Marriage Allowance
The marriage allowance allows an individual to transfer 10% (£1,260) of the personal allowance to a husband, wife or civil partner if the personal income is less than the personal allowance (usually £12,570).
During the tax year (6 April to 5 April), taxpayers can reduce their tax by up to £252.
Tax relief on work-related expenses
Funds used for items such as work uniforms and clothing, tools, subscriptions or business travel can claim tax deductions.
The allowance also opens up online claims and communication channels to ease people’s difficulties.
Click on the government link to check your eligibility: https://www.tax.service.gov.uk/claim-tax-relief-expenses/who-claiming-for
Notably, the revised rules for work-from-home allowances made during the coronavirus pandemic no longer apply.
The GOV.UK homepage also includes guidance for low-income people looking to make the most of their savings, as well as help for those struggling to pay their taxes.
