UK Tax credit

The UK Tax Credit system has been devised by the UK government in order to find a way to support the working class. The Tax credit currently has two major systems, the Working Tax Credit and the Child Tax Credit. While the Working Class Credit is concentrating on helping those who are officially employed but do not make enough money on a monthly basis to sustain a normal living condition, Child Tax Credit can be applied for by anyone who has a custody of one or more children. This time around we will be discussing the general conditions of application for a working class credit.

Working class credit:

In order to be able to apply for a working class credit, applicants have to ensure that they meet the below list of conditions.
Applicants need to be between the ages of 16 to 24 with either a custody of one or more children or having a qualifying disability and works a minimum amount of 16 working hours a week.
Applicant is between 25-59 years of age and is officially employed at a company with a minimum of 30 working hours a week
Applicant is disabled and has a minimum of 16 working hours per weeks
Applicant is a couple living under one household and has a minimum of 24 working hours in-between themselves ( ensuring one person has a minimum of 16 working hours a week).
Applicant is over 60 but wants to return back to doing part-time job.

The amount of Working Tax Credit:

The basic amount of working tax credit is GBP 1960 per year but the amount is always customized and depends on the exact status of the applicant. Let’s see a couple of examples to this:

If the applicants are a couple living under one roof then the yearly amount can go up to GBP 2010
If applicant works a minimum of 30 hours a week the amount is up to GBP 810
If applicant works but also has a qualifying disability then the amount can go up to GBP 2970
If the applicant has a severe disability the amount is up to GBP 1275
If applicant has to pay childcare then the amount is up to 70% of the childcare payment.

Once approved, the Working Tax credit is paid for 12 months, however due to the long application process all applicants are advised to apply for it well in advance.

What you need for the application:

First of all, you need to go to the governmental website of Tax credits where you can get to find the whole list of conditions which have to be met along with a calculation sheet which helps you count how much money you can be eligible for. You can apply online too. Ensure you have your Personal ID, your tax papers of last year and any other documentation which can prove to be qualifying. Bear in mind, that you may not get as much or any Tax credit if you are already receiving other governmental benefits. Call the hotline for more information.