Tsunami Disaster
Originally sent: January 7, 2005Having just finished my three minute silence, thinking of and praying for those whose lives have been touched by the terrible tsunami disaster in Southeast and Southern Asia, my thoughts naturally turn to that disaster as I consider the material for this issue of your newsletter.
The first point I want to make is please remember to tick the box for Gift Aid when you make your donations. This will increase the value of your gift to the charity by over 28%, and at no additional cost to you. Provided, that is, you expect to pay at least that much Income Tax and / or Capital Gains Tax this year.
You may donate to the Tsunami Earthquake Appeal by clicking on the following link: http://dec.org.uk/
The second point is that this disaster has highlighted an extremely unfair and unreasonable aspect of the Tax Credit legislation.
Tax credit childcare claimants who visit the area in order to look for lost loved ones may well find their childcare credit ceases for the time they are overseas. Where both partners are working, and then one ceases to be regarded as employed while overseas (which will often be the case with low paid and temporary work, even if a new assignment is waiting for them when they return) the childcare tax credits will cease until that partner returns to the UK. This is the case even though one partner remains in the UK, is still working, and still has to pay for childcare in order to remain in work.
This anomaly comes about as a result of Regulation 13 of the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002, SI 2002/2005.
There is much in the application of Tax Credit legislation that is patently unfair, but I think this particular rule is the epitome of the absurdities. Normally I do not particularly advocate trying to change tax law through political pressure ? just get to know the law so well that you and your clients always come out on top. But perhaps this is one tax matter that should get us all at our keyboards asking our MPs to do something. It is enough that so many people?s lives have been shattered by recent events ? we shouldn?t let Inland Revenue compound this through such inequitable legislation.
Adviser Breakthrough Training Solutions Ltd. takes no responsibility for loss occasioned by any person acting or refraining from action, or in consequence of any other person acting or refraining from action, as a result of the material in this article.
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