Thursday, 28 January 2016

Claiming your tax credit (UK)




Hello readers, some individuals are probably not aware that they are entitled to tax credit in the UK. Individuals that are not on a high income can claim tax credit in the UK. There are two types of tax credit which are
1. The Child Tax Credit
2. The Working Tax Credit

-With the Child Tax Credit, you as an individual must be responsible for the welfare of a child  (an individual younger than 16 years)  or a qualifying person (an individual that is older than 16 but younger than 20; the individual must be in school). If you cater to one child, you must be earning below £25,000 per annum, if you have two children, to qualify you must be earning below £35,000 per annum and if you have three children you must be earning below £40,000 per annum

-With the Working Tax Credit, you must either be at least 16 years, have a disability or have at least one child and must be working for a minimum of 16 hours per week, or be older than 24 years and work for a minimum of 30 hours per week or be aged 60 or above and work for a minimum of 16 hours per week. While couples with at least a child must work for 24 hours in total, with one of them working for at least 16 hours a week.

There is no income limit it depends on your situation, however, it most likely you won't qualify for tax credit if your annual income is above £14,000 and you are single with no children. If you are married with no children your annual income should be lower than £19,000 to qualify. Couples with a child must earn below £45,000, with two children must earn below £60,000, with three children must earn below £70,000.

To qualify for any of these tax credits you must be living in the UK. The moment you realise that you might be entitled to tax credits, make a claim immediately because if you are entitled to tax credits for 6 months and you apply for it at the end of the month, you will only get the tax credit for one month, cause it can only be backdated for one month. You will lose the remaining tax credit for the remaining 5 months.

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