Having children can end up costing you hundreds of thousands of pounds during your lifetime. It can also be a very stressful time for both parents. Invariably at least one of the parents will have to take some time off work and this can have a detrimental effect on your financial affairs that you may not have anticipated.
There is however a little known financial benefit that parents can take advantage of. If you have left work in the last 6 years to look after your baby, it is highly likely that you could be due a large income tax refund.
A great number of parents ask, “How can I claim tax back?” The reason why this is possible is because you probably stopped working part way through the tax year, resulting in your tax free allowance being calculated incorrectly.
The Inland Revenue very rarely contacts people to let them know they have paid too much tax, and the onus is on you to apply for a tax refund.