Changes Which Can Affect Your Tax Credit
uk tax credit

Tax Credits – changes which can affect your tax credit

The UK Tax Credit system has been specifically constructed to help the working class in the United Kingdom, especially those who are working but still do not earn enough money to be able to live a normal life. Despite this being called a credit, the payback system is very loose and applicants can only start with the payback once they absolutely ensure that their current salary makes them totally able to do so. The UK Tax credit has two key elements, the Working Tax Credit and the Child Tax Credit but when people talk about Tax Credit they generally mean the Working tax credit which is way more often applied for.

The amount of Tax credits can be easily calculated with the help of the online calculation sheet which is located at the governmental website and which is pretty easy to use. The most important for every applicant is to be aware of the following things:

Applicants have to bear in mind that some benefits close out the possibility of getting a working tax credit. For instance if someone was already accepted into the Universal Credit support system, they will automatically become non-eligible for Working Tax Credit. Once the applicant is accepted into getting a specified amount of Working Tax credit, this will be paid for a 12 month period of time. However it is essential to be aware that there are lots of changes that may affect the Working tax credit and which must be reported well on time.

Every applicant must be well aware that failing to report a change on time or reporting any false or falsified data would result in a pretty big fine that can go up to GBP 3000, in case the government has any suspicion that any data was falsified on purpose.

Changes can be reported both online on the governmental website of UK tax Credits or can also be reported on an official sheet which can be purchased in any UK Post office. Bear in mind that if you choose the postal way, the process will also become substantially longer.

More details are to be found on the official website of the Tax Credits or if applicant calls the Tax Credit hotline.