Introduction To HMRC Working Tax Credit|DNS Accountants

About Working Tax Credit

Introduced in April 2003, working tax credit is designed to provide an additional financial support for working people who are on a low income. Working tax credit is being replaced by Universal Credit for most people, by 2017. Whether you are working for someone else or are self-employed you are still eligible for working tax credit. If you are responsible for any child, you may also be entitled to Child Tax Credit (CTC).

Whether you’re entitled or not to the working tax credit depends on:

•        Your Income and certain circumstances
•          the hours of paid work you do each weak

To qualify for working tax credit, an individual must work a certain numbers of hours within a week

Least number of working hours a week in various circumstances to be eligible for a working tax credit are as follows:  Aged (25-59)-30 hours a week, Aged (60 or above)-16 hours a week, Disabled -At least 16 hours, Single(with 1 or more children)-16 hours a week, Couple(with 1 or more children)-Usually, at least 24 hours between the couple (with either of you working at least 16 hours).

How Much You’ll Get?

If you are eligible to claim working tax credit, you can get a basic amount of £1,960 known as the basic element and depending on your circumstances and income, you’ll also get an extra amount (known as ‘element’) on top of this. Read below to check out how much working tax credit you can get:

•          If You’re a couple applying together you can get up to £2,010 a year.
•      Single parent can get up to £2,010 a year.
•          For individual working at least 30 hours a week-Up to £810 a year.
•          In case of a disability, an individual can get Up to £3,090 a year.

If You have a severe disability you can claim tax credit Up to £1,330 a year (usually on top of the            disability payment).            If you pay for approved childcare you can get Up to £122.50 for 1 child or £210 for 2 or more                children a week. If you’re entitled to the working tax credit, you may be able to get tax credit even when you don’t work. For example:            If you’re sick or            If you’re on maternity leave or            If You are in between jobs. Ifyou’re making a new Working Tax Credit Claim you can call HMRC(HM Revenue and Customs) :            Telephone and Text phone: 0345 300 3900            Outside UK: +44 2890 538 192            Weekdays Timings for Monday to Friday,8am to 8pm            Weekends Timings-Saturday, 8am to 4pm and Sunday, 9am to 5pm Read Tax Credit FAQs on DNS Accountants