Everything About Tax Credits

About Tax Credits

 tax return

Let’s talk about tax credits in the United Kingdom and the changes which are expected to roll in from April 2017. Tax Credit is a genuine way to help the British working class, especially those whose wage doesn’t reach the minimum to sustain a normal living. Therefore this tax is available for everyone who works full time or part time but their wage doesn’t reach an expected minimum.

Tax Credits currently have two main types: the Working Tax Credit and the Child Tax credit. While working tax credit can be applied for by anyone who is between 25 and 59 having a job of minimum 30 working hours per week, the Child Tax credit is available for everyone who has kids. The application process is easy but it’s lengthy therefore it’s worth applying on time, even before you actually start a job but can prove with papers that you will do so.

Working Tax credit is also available for those with kids between the age of 16 to 24 and couples given they both work a minimum of 16 hours a week. The basic sum of Working Tax Credit is GBP 1960 per year and this is to be paid for the applicant weekly or monthly by wire transfer. The basic sum of Child Tax is around GBP 2780. Bear in mind that there are tons of factors which may affect the creation of the sum as both taxes have different elements which create the eventual sum to be paid.

Those who are disabled or severely disabled but still keeping jobs also can apply for Working Tax Credit, even if they receive other disability benefits, but it’s worth calling the Tax Credit hotline if you want to know more specifics on this.

Tax Credit is paid for a 12 month of time but it’s important to note that it has to be renewed on time. Tax Credit office is sending out renewal packs well before someone reaches the deadline and it’s wise to start the renewal right on time because if you go over this period, it’s not only that your payment would stop and it may last months to re-apply, but also you might be prompted to start repayment. In the end of the day, this is tons of extra paperwork therefore do not forget to renew your tax credit on time.

When it comes to repayment, it generally gets started when an applicant cancels tax credit or fails to renew it on time. Repayment can happen in one single sum but it can also be repaid in form of a monthly partial payment. As applicants only have a 30 day period to start repayment counting from the receipt of the first call for repayment, they need to get in touch with the Tax Credit office to manage repayment the best way possible.

It’s also essential to make sure all the information you have sent to the Tax Credit office is true and not falsified in any ways, because any unreported changes that may affect the sum of the credit may result in paying a fine up to GBP 3000.

Call Tax Credit line for more information on applying for and managing your Tax Credit.