Tax credits Pt 2

It should be remembered that, if someone is subjected to the immigration processes in UK, it is most likely

that they do not become eligible to receive funding through this scheme.

Status requirement

The applications or claims can be made individually if you are single or permanently separated where as joint applications should be made in case of married and living together couples as well as couples who are in civil partnership or else living together as if in a civil partnership.

Income requirements

All families with children less than 1 year with an annual income of up to 66,000 pounds or else families with children of up to 58,000 pound annual income, can apply for credit based on this scheme.

Other requirements

The person who claims for child tax credit needs to be responsible for at least one of the children and it should be remembered that, the support through this scheme will be valid till the September 1st following the 16th birthday of your child. If not, following criteria should be met in order to continue support through this scheme for the young person.

- Be under 20 years of age engaged in full time education or else unwaged training

- Be 16 to 17 years of age and has left full time non advanced education or training without a job or a training placement and is registered with the Carrier services or Connexions Services of Ireland.

- Is not in full time work of 24 hours or more per week

- Do not claim other benefits, tax credit…etc in his or her own right

Tax credits

Child tax credit is a system which takes in to account the income levels of families with children and the low income generated by some of the working members of a family. It takes into account the number of children as well as their ages when assessing the eligibility requirements. It should be remembered that, child tax credit is separate from other child benefits which is on offer and there is a specific eligibility criteria for a family or a person to be eligible for this system of compensation.

Residency requirements

A person needs to be a resident in UK, Ireland, Wales or Scotland and should be above the age of 16 years. But, people who are citizens of European Economic Area (EEA) who lives in UK are also eligible for this scheme along with people from these member states and Switzerland who receives some sort of public funding from UK such as pension or job seekers allowance. Apart from these, Crown workers who are posted elsewhere are also eligible for this scheme.

Risks in International Trade

International trade is the buying and selling of goods and services with countries around the world. Countries trade for various reasons such as a lack of raw materials in their own country. In order to make up for this they get these goods from other countries. There are exchanges made for food and finished products as well to make up for a countries lacking in these areas.

There are several advantages to international trade including an increase in company sales which increases the profits due to countries specializing in areas of land, labor and money to back such trades. Even with the benefits to international trade there are also risks to consider before participating in international trade.

Part of the risk involved is known as Country risk. Country risks are those that are in the buyer's country or that the country of the buyer causes. These risks can affect the payment to the seller and compromise political, social and economic parts of the trade. The things that can be affected can include the control regulations of exchange, government policies and any changes made to them, embargoes on trade and even a lack of foreign currency.

The political risks involve the stability of the countries government. An unstable government can lead to a bad economy and possible loss of revenue when performing international trade that involves such countries.

Taxes on trade must be considered as well. While it is not usually considered a risk factor the amount of the taxes do need to be taken into consideration prior to trading.

The other part of risk is known as Commercial risk. These are things that expose those involved in International trade to loss. The buyer's ability to pay due to financial restraints put on them can be compromised. The seller can have an inability to give the correct quality and or quantity of the goods or services provided. There is a danger of the bank not having the capability to honor the promises it has made.

When using the currency of the country that one is trading with the value of that currency against the currency in the country that they base business operations must be considered. A loss of profits can occur when the foreign countries currency is a value below their usual currency and money is lost when it is converted. To avoid this risk some countries merely exchange goods and services for other goods and services.

It is up to both parties to check the credentials and credibility of the other party.

Sources:
http://www.myownbusiness.org/s13/
https://www.fnb.co.za/commercial/international/imports/tradeRisk.html
http://www.answers.com/topic/net-exports?cat=biz-fin