tax credits

UK Tax Credits: general information

Each country has a different system to help those who are either unemployed or who have an income which is closing up on the minimum range and makes life very hard for them. The United Kingdom has a very specific system in order to help those who have a legit and legal workplace but whose wage cannot fully help them maintain a normal lifestyle and for those who have children. This is called the UK Tax Credit system.

The UK Tax credit system has two main elements: the Working Tax Credit and the Child Tax Credit. Contrary to their name, these are rather ways of support and donation, as the system of paying back this credit gives the chance for those who are eligible for the credit to pay it back way later, when their income reaches a good amount from which they can surely pay the credit back.

Let’s see what each element can basically offer this timearound:

Working Tax Credit: this is the larger element of the tax credit system, not only because it is for those who hold a job but also because it’s also eligible for those who have children and work and for those pensioners who decide to go back to work to do a low-wage job. The working tax credit can be applied for by one person or by one couple. All you need for application is your last year’s tax papers which would clearly show your incomes and an employment paper which confirms that you are legally employed at a company. The application can also be submitted before the actual employment commences if the candidate already has the contract of employment at hand. The application can be done by anyone who is over the age of 18 either online or in person by buying an application sheet at a post office then sending it in to the UK government. The portal of the government also has a detailed information on the tax credit, the process of application, the benefits and it also includes a calculation sheet which helps candidates to calculate how much money they are eligible for.

The amount of tax credit is not the same for every candidate. One can apply for it then the board will decide how much they are eligible for. Of course, the lower someone’s wage and the hardest their situation is the larger amount of money will be given to them. The application process can take up to a whole month so everyone is advised to apply well on time.

Child Tax Credit: This is the segment of tax credit which is quite easy to obtain as its condition is, for the applicant to have one or more children and to hold a part-time job which would not cover their full expenses.

Each of the credits are sent via wire –transfer and can be asked to be transferred to a regular bank account or to a Workers’ Union account. All applicants are forewarned to provide legitimate and true information on their application sheet or ask for correction well on time, otherwise they will be sanctioned.