Money words, demystified.

• US

  What is the EITC?

  A US tax credit worth up to $7,830 for low-to-middle-income workers.

  The Earned Income Tax Credit (EITC) is money the IRS gives back to people who work but don't earn a lot. You get it as a refund — even if you don't owe any tax.

  For 2024 it's worth up to $7,830 if you have 3 or more kids, $6,960 with 2, $4,213 with 1, and $632 with no kids.

  Lots of people miss it. The IRS estimates 1 in 5 eligible workers don't claim.

  You claim it on your federal tax return — and a free VITA volunteer can file it for you.

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• US

  What is the Child Tax Credit?

  Up to $2,000 per child under 17 — and up to $1,700 is refundable.

  The Child Tax Credit (CTC) reduces your tax bill by up to $2,000 per qualifying child under 17.

  Even if you owe no tax, up to $1,700 per child is refundable as the Additional Child Tax Credit — meaning the IRS sends you the money.

  Phases out above $200k single / $400k joint, but most low-income families get the full amount.

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• US

  What is VITA — and is it really free?

  Free in-person tax prep by IRS-trained volunteers.

  VITA = Volunteer Income Tax Assistance. It's an IRS programme that pairs you with a trained volunteer who files your taxes for free.

  You qualify if you earn under roughly $67,000, are 60+, have a disability, or speak limited English.

  Find your nearest VITA site at irs.treasury.gov/freetaxprep or call 211.

  They'll claim every credit you're entitled to — including EITC and CTC.

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• US

  What is an ITIN?

  A tax ID number for people who can't get a Social Security Number.

  An Individual Taxpayer Identification Number (ITIN) lets you file US taxes if you don't qualify for an SSN — including undocumented immigrants and many spouses/dependents.

  Having one means you can claim the Child Tax Credit for SSN-holding children, comply with the law, and build a tax record.

  Apply with Form W-7 alongside your tax return. Free help is available at Certifying Acceptance Agents and many VITA sites.

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• US

  Free File: file your taxes online for free

  If your income is $84,000 or less, you can file federal taxes free — directly with the IRS.

  IRS Free File is a partnership with tax software companies — if your AGI is $84,000 or less (2024) you can use brand-name software at no cost.

  IRS Direct File is a newer free tool from the IRS itself, now in 25 states.

  Both walk you through a simple Q&A — no maths required. They claim EITC and CTC for you.

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• UK

  How does Universal Credit work?

  A monthly UK benefit that tops up low or no income.

  Universal Credit is a single monthly payment for people on a low income or out of work. It replaces 6 older benefits including Working Tax Credit and Housing Benefit.

  Payments include a standard allowance plus extra for children, housing, disability, or caring responsibilities.

  If you work, your UC reduces by 55p for every £1 you earn above your work allowance — but you keep some of the boost.

  Apply on gov.uk/apply-universal-credit. Citizens Advice can help for free.

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• UK

  Marriage Allowance — worth £252/yr

  If one partner earns under the personal allowance, transfer some to the other.

  If one of you earns less than £12,570 and the other earns under £50,270, you can transfer £1,260 of personal allowance — saving up to £252 a year on tax.

  You can backdate your claim by up to 4 years — that's potentially £1,000+.

  Apply free at gov.uk/marriage-allowance. Avoid third-party claim companies who take a fee.

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• UK

  What is a Self Assessment tax return?

  How HMRC works out tax for self-employed people and others not on PAYE.

  If you're self-employed, a landlord, or earn untaxed income above £1,000, you must file a Self Assessment tax return each year.

  Register at gov.uk/register-for-self-assessment. Deadline: 31 January (online) for the previous April–April tax year.

  You'll need to keep records of your income and expenses. Allowable expenses lower your tax bill — equipment, mileage, working-from-home, training.

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• UK

  What is an ISA?

  A UK savings or investment account where the gains are tax-free.

  An Individual Savings Account lets you save or invest up to £20,000 per year without paying tax on the interest, dividends or growth.

  Three types worth knowing: Cash ISA (savings, instant access), Stocks & Shares ISA (long-term investing), Lifetime ISA (£4k cap, 25% government bonus for first home or retirement, age 18–39).

  You can open one at most banks. MoneyHelper has a free comparison tool.

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• UK

  Council Tax Reduction — easily missed

  Up to 100% off your Council Tax bill if you're on a low income or benefits.

  Most people on Universal Credit, Pension Credit, or a low income qualify for Council Tax Reduction — sometimes wiping the bill entirely.

  Single-person households get an automatic 25% discount.

  Apply via your local council's website (gov.uk/apply-council-tax-reduction). Citizens Advice can help if you're refused.

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• UKSelf-employed

  What expenses can I claim as a self-employed PT?

  Equipment, mileage, CPD, insurance — lower your tax bill legally.

  As a self-employed personal trainer, allowable expenses are costs that are 'wholly and exclusively' for your business. You subtract them from your income, so you pay tax only on the profit.

  Common claims: kit and equipment (mats, weights, resistance bands), gym hire or chair-rent, insurance (public liability, professional indemnity), CPD courses and qualifications to maintain your trade.

  Mileage at HMRC's approved rate (45p/mile for the first 10,000 miles) for travel between clients — not your commute. Phone, website, marketing and a portion of home-office costs also count.

  Keep receipts and a simple spreadsheet. If your turnover is under £90,000 you can use cash basis accounting — simpler than full accruals.

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• UKSelf-employed

  New Enterprise Allowance — up to £1,274 to start your business

  A government grant for Universal Credit claimants starting self-employment.

  The New Enterprise Allowance (NEA) helps people on Universal Credit, JSA or ESA move into self-employment. You get a business mentor plus a weekly allowance worth up to £1,274 over 26 weeks.

  You may also access a start-up loan of £500–£25,000 at low interest once your business plan is approved.

  Eligibility: you (or your partner) must be claiming UC and have a viable business idea. Ask your Jobcentre Work Coach to refer you — it isn't always offered automatically.

  Note: NEA has been rebranded and folded into wider DWP self-employment support in some areas. Always check current eligibility with your Work Coach.

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• UK

  Help to Save — earn a 50% bonus on your savings

  Save £1–£50/month and the government tops it up by 50% — worth up to £1,200.

  Help to Save is a government savings scheme for people on Universal Credit or Working Tax Credit. Save £1 to £50 a month for up to 4 years.

  After 2 years you get a 50% bonus on the highest balance you saved. After 4 years, another bonus on any further savings. Maximum total bonus: £1,200.

  You can withdraw any time, but it'll reduce your bonus. Apply at gov.uk/get-help-savings-low-income.

  It doesn't affect your benefits as long as your total savings stay under £6,000.

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• UKSelf-employed

  Universal Credit and self-employment — the Minimum Income Floor

  UC assumes you earn a minimum amount once self-employed — here's what that means.

  The Minimum Income Floor (MIF) is an assumed income DWP uses to calculate your Universal Credit once you're classed as 'gainfully self-employed'. It's roughly 35 hours × National Minimum Wage per week, minus tax and NI.

  If you earn less than the MIF, UC is still calculated as if you earned that amount — so your payment doesn't rise to cover the shortfall.

  You get a 12-month start-up period when the MIF doesn't apply — protecting you while your business gets going. You can only claim this once in your lifetime.

  Report actual income and expenses every month via your UC journal. Bad months balance against good months only within the same assessment period.

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• UK

  Budgeting Advance — emergency cash if you're on Universal Credit

  Up to £812 interest-free if you need emergency funds.

  A Budgeting Advance is an interest-free loan from DWP for one-off costs — emergencies, work-related expenses, funeral costs, or essentials like a cooker.

  Maximum: £348 single, £464 couple, £812 if you have children. You repay it from your future UC over up to 24 months.

  Eligibility: you've been on UC (or similar) for 6 months, earned under £2,600 (£3,600 couple) recently, and repaid any previous advance.

  Apply via your UC journal or by calling the UC helpline. Decision is usually within a few days.

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• UKSelf-employed

  Criminal record and self-employment — what you need to know

  Self-employment largely sidesteps employer disclosure rules — but some licences still apply.

  When you work for yourself, there's no employer to disclose to. Most clients won't ask, and you have no legal duty to volunteer your record for general PT work.

  Exceptions: working with children or vulnerable adults (e.g. junior clubs, care settings) usually triggers an enhanced DBS check. Certain regulated sectors (security, taxi, finance) require disclosures too.

  Under the Rehabilitation of Offenders Act, most convictions become 'spent' after a set period and don't need disclosing for non-exempt roles.

  Unlock (unlock.org.uk) offers free, confidential advice for people with convictions navigating self-employment.

  Ask Clara about this
• UKSelf-employed

  The Trading Allowance — earn up to £1,000 tax-free

  If your self-employment income is under £1,000 a year, you may owe no tax at all.

  The Trading Allowance lets you earn up to £1,000 a year of self-employed or casual income tax-free — no need to register or file a return.

  If you earn more than £1,000, you can either deduct your real expenses or claim the £1,000 allowance as a flat deduction — whichever lowers your tax bill more.

  It sits on top of your Personal Allowance (£12,570) — so if PAYE wages use up your personal allowance, the trading allowance still applies to side income.

  You can't use it for income from your own limited company or from a partnership.

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• UKSelf-employed

  Workplace Pension — what self-employed people need to know

  You're not auto-enrolled, but you can still save tax-efficiently for retirement.

  Self-employed people aren't auto-enrolled into a workplace pension. That's a feature for employees only — but it leaves a big gap if you don't act.

  Best option for most: a personal pension or SIPP (Self-Invested Personal Pension). The government adds 25% tax relief on contributions (basic rate) — so £80 in becomes £100.

  NEST (nestpensions.org.uk) accepts self-employed members directly — low-cost, simple, government-backed.

  You'll still get the State Pension if you've paid enough Class 2/Class 4 NI — check your forecast at gov.uk/check-state-pension.

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Information here is for guidance only. Always check official sources before making big decisions.