Tax Credits

What are tax credits?

Tax credits are a system for supporting people on low income, especially families with young children. They're paid straight into recipients' bank accounts.

What different sorts of tax credits are there?

There are two main types of tax credits: child tax credit and working tax credit. The amount of the child tax credit depends on the number of children who live with you and also on your income. Child tax credit is paid on incomes of up to 14,155 pounds. It then begins to taper off at the rate of 37% for every 100 pounds of extra income. The other tax credit is the working tax credit. This is aimed for people on low incomes who are aged 25 or more and who work for 30 or more hours a week. There are three elements to this: a basic element of 1,665 pounds, an element reflecting a person's status as a low parent or a member of a couple or whatever, and also the 30 hour element I mentioned. That's payable in full up to incomes of 5,220 pounds and then tapers off at 37% of the excess.

What information do I need in order to apply for tax credits?

You'll need to provide quite a lot of information to apply for tax credits, including your personal circumstances such as your income, your children, status, and so on.

What forms do I need to fill in?

You need to fill in the forms which are contained in the pack, which you will be sent to claim the credits once you've phoned the government helpline.

What is the claiming process?

Once you've completed the claim form and been given tax credit, you must remember to tell the tax credit people about any changes in your circumstances. Every year they will ask you to renew your claim and to confirm that you are still in target credits. The deadline for submitting the renewal form is the 31th of July each year