You may feel heavily penalised in tax when you receive your monthly pay packet, but there is a lot of financial assistance available for people needing extra support. Whether you need money for childcare or to top up your earnings, you may be entitled to receive benefit.

• Income tax
• National Insurance Contributions (NICs)
• PAYE 
• Self assessment 
• Inheritance tax 
• Council tax 

Benefits

There are various state benefits you might be entitled to depending on your individual circumstances. This is particularly the case if you are on a low income or have certain other costs to meet because of your personal situation.

Benefits are there to support you and your family if you need some form of financial assistance. You may be entitled to benefits if any of the following apply:

• You are on a low income (employed or looking for work).
• You have dependent children.
• You are sick or disabled.
• You are caring for someone.
• You are aged 60 or over.
• You have been bereaved.
• You are pregnant or have recently had a baby.

Depending on your individual circumstances, the following benefits might be available:

• Low income
• Families
• Retirement
• Disability allowance

Low income

• Jobseeker’s Allowance: You are entitled to this if you’re unemployed and looking for work.
• Income support: This is available for certain groups of people who do not have enough money to live on.
• Council tax benefit: You may get a reduction on your council tax bill if you are on a low income.
• Working tax credit: This is a payment to top up earnings for people working on low incomes.
• Housing benefit: You may get housing benefit if you pay rent and your income and capital are below a certain level.

Families

• Child Benefit: This is available to people bringing up children under the age of 16 (under 19 if they are in full-time education). From January 2009 it is £20 a week for the eldest child and £13.20 a week for each additional child.
• Child Tax Credit: This depends on your income, but many families qualify. You can get up to 80% of what you pay in childcare, to a maximum of £175 per week for one child or £300 per week for two or more children. To find out your entitlements call the Tax Credit Helpline on 0845 300 3900.

If you think the amount of Child Benefit you've received is wrong, you need to tell HM Revenue & Customs (HMRC). You can do this online, on the phone at 08453 021 444 or write to them at: Child Benefit Office , PO Box 1, Newcastle upon Tyne, NE88 1AA

Retirement

• State Pension - You are entitled to a state pension once you reach retirement age, providing you have made sufficient NICs. Full details on this can be found in the family section of this site.
• Pension Credit - This is available to those who have reached retirement age and are on a low income.

Disability Allowance

This is a tax-free benefit you may get if you need help with personal care or have walking difficulties because you are physically or mentally disabled. Disability Living Allowance is in two parts - the care component and the mobility component. The Benefit Enquiry Line (0800 88 22 00) can help you claim.

• Attendance allowance - You might be entitled to this of you are aged 65 or over and need help with personal care because you are physically or mentally disabled. The lower rate paid is £47.10 while the higer rate works out as £70.35. Rates depend on how restricting a disbality is to an individual.
• Incapacity benefit - You may be able to claim for this if you are under the state pension age and are unable to work because of an illness or disability. This is paid in short and long term rates, the long term rate is £89.80. However, incapacity benefit has now been replaced by Employment and Support Allowance (ESA) which was introduced on 27 October 2008 for new claimants. This is aimed at finding people appropriate work which they are capable of doing. A rate is paid while a decision is made on your capability for work.