Tax credits overview

Tax credit is an original form of providing help and benefits for those who are either holding a proper workplace or for those who are parenting or legally guarding one or more children. While tax credit is not really a benefit as it’s being permanently deducted even from the money paid for the applicant it’s still one of the most effective and popular form of getting some extra help for millions of people living under the minimum living conditions within the UK.

There have been two key systems with the working tax credit and the child tax credit. But this is soon to be wholly updated to become a new updated system running under one umbrella term called Universal Credit. The whole system is due to be implemented by 1919 but Universal Credit exists in several regions already. Let’s learn about both key credits.

Working tax credit:

This is the credit which is one of the most popular benefits to be claimed because it’s for those who have a workplace but still earn under the minimum salary. The good thing in this credit is, that you can obtain is whether or not you have a child and you also can apply for it with or without a partner. All you need for the working tax credit is to have the maximum number of working hours which also depends on exact applicant but generally ranges between a minimum of 16 to 30 hours a week. The overall sum must be GBP 1960/ year, but the sum is different once you obtain it having a child. Other statuses of the applicants such as disability or being eligible for a pension. Once you get the claim form and send it back your claim will be evaluated and the sum you get will be decided. You will get the working tax credit paid once a month. It can be paid via wire transfer or postal order.

Child tax credit

Once you have a child or go on a maternity leave you can freely obtain a child tax credit. It’s important to know, that you can get a working tax credit even once you get a child tax credit given that you are employed by the time of your maternity leave. Child tax credit is provided in different measures, depending on the number of children, the exact status of the family and other factors too. Child tax is paid via wire transfer once a month. Since Universal credit has been implemented, different rules apply for children born before 6th April 2017 and those born after 6th April 2017. The most important change regarding the child tax credit is, that the new Universal Credit solution would not naturally contain the child segment. (Normal Child tax had two key segments, the child and the family segment). Now once can generally obtain a child segment only if she has 3 or over 3 children. All sorts of different rules apply depending on the exact situation of the applicant, therefore it’s wise to call the Child Tax Credit Helpline for more information.