Uk Tax Credits. More on Workers’ Tax Credit
As the UK Tax Credit’s main segment is the Worker’s Tax Credit, this is the credit most people apply for. Hereby we would like to enlist the basic conditions of application and the basic amounts which can be gained with the help of this credit.
Basic conditions of application:
- Between the age of 16 to 24 years of age.
- Applicant must either be responsible for the upbringing of a child or he/she has to have a disability that qualifies for the credit. ( In which case one must look for further information on what other types of support can or cannot come along with the Tax Credit)
- The Applicant is over 25 years of age works a part-time or full-time job having or not having one or more children.
- If the candidate works a minimum of 30 hours/week and is without children
- If the applicant works a minimum of 16 hours a week and has one or more children
- If the applicant’s maximum salary is lower than GBP 13.253 per year
- If the candidate earns less than GPB 6.420 then he/she is entitled to receive the 100% sum of the credit.
- The current general amount of the credit is GBP 1960/year but this can vary according to the exact salary, social and living conditions of the applicants.
- Couples living in one household can also apply together for the tax credit.
- Applicants cannot claim more types of tax credits or other forms of support in the same time but there are other helpful resources they can browse from.
How to calculate the Working Tax Credit:
- The applicant has to hold his or her tax papers from last year which would show the following, all helping in the decision making process in terms of the amount of credit.
- The total gross income per month
- Employee benefits: any extra benefits, from food tickets to other ways of support employee gets
- Tips: if they are to be officially included and not yet part of the gross income
- Severance payment: if the total amount is over GBP 30000
- Any legitimate earning from outside the UK
What other things may count as an income:
- State pensions
- Personal pensions or any form of occupational pensions
- Interests on bank savings
- Incomes on investments
- Incomes on renting out a property
- Income on any type of trust, estate or any settlements ( used for agricultural reasons for instance)
The below need not to be enlisted as part of an income:
- Tax credits: there are different sorts of credits apart from tax credits.
- Student loans
- Student grants
- Income received as a way of support for your children
As you can see the applicants would need to collect plenty of data well in advance of the application process. In case someone have difficulties with this, the UK government also operates a helpline for those having any questions of working tax credits.
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