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Welcome to your March Legal point. This month, we've a few ideas to put the spring back in your step! Here at Law Express we are very conscious that the news is full of economic gloom and tales of woe. This month we have decided to look at ways of potentially increasing your income with a few suggestions that may help. We are grateful to Payplan, the debt management company for their assistance with this. Am I able to claim Working Families Tax Credit, and where can I find out if I am eligible for any other benefits? “Working Families Tax Credit” is 10 years old and is administered by HM Revenue and Customs. It is a completely separate system from Income Tax and should not be confused with Tax Allowances. Any family, whether the parents are married, unmarried or lone parents, who have one or more children living with them, work at least 16 hours per week, live in the UK, may be entitled to this benefit. To see if you are eligible for Working Family Tax Credit complete the necessary forms at www.hmrc.gov.uk/taxcredits If you are already in receipt of tax credits make sure the Revenue have all your up to date information. For more information on other benefits contact your local Benefits Agency or check out www.direct.gov.uk. |
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There are number of things you could do which include:
Merging your credit cards: If you are able to obtain new credit cards or loans with lower interest rates, you could merge as many of your creditors as possible. Some companies have an initial 6 or 12-month period where they will charge 0% interest during that time. Throughout this period you should try and pay off as much debt as possible. 0% Balance transfers are good, but ensure you cut up the cards as soon as they arrive, to remove temptation to spend more.
Pay more than necessary each month: The simple way to pay off your debts quicker is by paying more than the contractual payment, but only if your income and expenditure allows it.
Cancel your repayment insurance: A typical high-street loan for £10,000 over 5 years would cost you £11,673.60 to repay, based on an interest rate of 6.4%. But should you opt for repayment insurance you will need to pay an additional £2,576.40 for the privilege, which is more than a quarter of the amount borrowed and would take longer than 5 years to repay the loan and repayment insurance.
Is there any way that I can earn extra income from my home?
One way of earning some extra income may be to consider renting a room to a lodger. There is a recognised scheme, known as The Rent a Room Scheme, that lets you receive a certain amount of tax-free ‘gross’ income (receipts before expenses) from renting furnished accommodation in your only or main home. The total limit you can receive at the current time is £4,250 p.a.
Can I get any help to pay my council tax?
For those on a limited income or in receipt of some means tested benefit it is possible to obtain Council Tax Benefit. To see if you qualify you can visit your local authority website which may have an online calculator to assess the situation or a telephone number to call.
There are also other ways that a council tax bill may be reduced:
- A disability reduction where your home has been adapted for use by a physically or mentally disabled person of any age (including children). If you think you might qualify - contact your council for further help and advice. Disability reductions can be backdated.
- By obtaining a discount. A discount of 25% will apply if there is only one adult over the age of 18. This is known as single person discount. There are also other types of discounts known as status discounts. There are a large number of these so to find out more contact either the council or your local free advice centre.
For anyone who may be concerned about issues of debt please either contact Law Express or Payplan (at no charge) on 0800 917 7823 or www.payplan.com
