29 September 2000

Tax credit eligibility?

FARMERS making little or no profit, who have modest savings and dependent children should qualify for the governments new working families tax credit.

Maximum relief is available to those who earn under £4755/year, with less than £3000 savings. For a working family with two dependent children, this could be worth £115/week, or nearly £6000/year.

"Even when earnings are £200/week, a family with three dependent children could be entitled to over £80/week," says David Missen of accountants Larking Gowen, adding that several of his larger Norfolk farming clients are likely to qualify.

"And though the benefit is earnings related and runs out when savings exceed £8000, the good news is that business capital, such as the farmhouse, land, machinery and livestock, do not count towards this total."