Tax credit is a handy way to help someone get out of trouble. Although it’s not a benefit or a grant, because the credit needs to be paid back later on, due to the length of time available for paying it back, people prefer to opt for this form of credit than any other ways. In this chapter we will explore how many sorts of credits there are so that you can see which one is best for you to opt for.
Working tax credit is a sort of a universal credit that’s available for all those, who do have a legal employment, let that be a normal or a part time employment. Different conditions apply for those who are with children and for those who apply for this credit as a couple. There is a maximum value someone can opt for that is in normal cases GBP 1960/ year but there are all sorts of different factors which could affect this value. The value is more if someone is opting for a credit with one or more children. The most essential is that someone has the minimum required working hours weekly that is 30 hours in normal cases and 16 hours in special cases ( for instance if someone is disabled or if someone is responsible for a child). It makes things easier that someone can opt for a Working tax credit also when they are to officially start a job. Today, there are certain areas in the UK where someone cannot opt for a Working Tax Credit any longer because it’s now part of the Universal Tax credit system. The credit is paid for the applicant once a month. The duration of the application and evaluation period is pretty long it can take up to 5 weeks or more altogether, this is something the applicant should bear in mind, especially when it comes to the renewal of the credit.
If you want to learn more about how much someone can get as a Working Tax Credit, they can go to the governmental page to use the tax credit calculator. The sum of minimum required wage varies according to someone’s exact living conditions and family status.
Universal Credit is very similar to working tax credit and it’s available for those who live under the minimum living conditions due to low wages or in some instances also for those who are unemployed. Universal Credit is available both in the area of the United Kingdom and in Northern Ireland but different conditions apply. Due the government’s tax credit improvement Universal Credit is soon to replace all the other credits, including the Working Tax Credit and the Child Tax Credit. It will also affect plenty of benefits however as of now, if you are claiming any of the other credits, you cannot apply for a Universal Credit in the same time. Today, there are areas where you can only get Working Tax Credit and other areas where you can only get Universal Credit. The reason for this is, that the Universal Credit is currently replacing the old tax credit system in stages.