The sub-types of UK Tax Credits

In this article I’d like to elaborate on the two core types of Tax credits available in the UK for those whose income falls under a pre-defined minimum and for those who need some extra when having a baby or a child in their care. This tax system has been established back in 2003 and it’s proudly going on up until 2017, when it will become part of the Universal Credit system, a different system which is already in function in the UK.

Working tax credit:

This is the one credit that’s claimed by most people because it covers a much wider scope of aspect than the Child tax. As an extra, next to providing help for individuals and couples, it can also be claimed by those with or without children. There are of course certain criteria which needs to be fulfilled for someone to be able to claim this tax and the main condition is for the applicant to hold a proper job.

This tax was specifically devised for those though do work but whose work income doesn’t reach the minimum amount necessary for them to sustain a normal living condition which is currently below the yearly amount of GBP 14000 per a single person and GBP 19000 per a couple and GBP 40000 per household with children. The maximum amount that can be claimed is GBP 1960 per year. There is a whole list of conditions the applicants have to provide with more details on the UK government’s page along with the form which can be downloaded then filled out and given to one of the local Job Central offices in the area of UK.

Child tax credit:

This credit is much easier to obtain as it basically only requires the proving of having a child or having legal responsibility/custody of a child. The only critic regarding this tax is that as of 2015 it’s a 2 child cap credit, meaning that there is one maximum amount that’s the same for the number of children if this number exceeds two. This credit has two segments: a family and a child segment.

Claiming: you can download the form from the government’s page or you can obtain it via post (it takes over 2 weeks to be delivered). You can also call the tax credits contact number for more info

Supply: once an applicant has proved to be fit for this tax it will be granted for a year’s period, after which it can be either renewed or it will be withdrawn. Application process: as the evaluation process itself takes over 5 weeks everyone is advised to send in the application well in advance.

For more details, credit calculation and application visit the UK government’s website.