There is a general confusion when it comes to incomes or being aware on what counts as an income therefore we have come to the conclusion that it’s better to enlist everything which may count as an income from the point of view of application to a Working Tax Credit. We will enlist everything which counts as an income below.
This information is very important because everything which may count as an income would lower the sum of a Working Tax Credit and in addition, if an applicant is not aware of what counts as a benefit and fails to report any such income, may even be fined up to GBP 3000 for failing to report this to the tax office. Therefore, pay close attention to the list below:
What counts as an income?
It’s important to note that there are so many more forms of payments which may count as an income from the applicant’s point of view. Get more information on incomes from the HM Revenue and Customs (HMRC) which provides a much more detailed list.
Benefits which may also count as income when it comes to applying for a tax credit:
It’s essential to note that once applicant or the applicant’s spouse is receiving Universal Credit, then the applicant will be automatically dismissed from receiving Working Tax Credit. It’s also important to add that the whole UK credit system is bound to change from April 2017 as both the working tax credit and the child tax credit will become part of the Universal Credit system in the United Kingdom and this also would mean a change in the sums and the conditions to apply.
Application can happen both online or by filling an application form which can be acquired from any local tax office or even post office in the area of the United Kingdom and Northern Ireland. As the process is quite lengthy ( up to 3-4 weeks) it’s wise to apply well on time. What you need for the application is your National Insurance number, your ID, your tax papers from last year and official documentation on any other benefits you are currently receiving. One can apply for a tax credit for someone else, generally a family member if you are an authorised intermediary and you hold the necessary papers to ensure that. In the case of Child Tax credit it is enough to hold the baby’s papers ensuring you are the official parent or you have official custody over the child.