UK Working tax credit is a brilliant system which has been created to help those who are in need of a further support system because the amount of money they make does not cover their monthly costs. Tax credits have been a great help for millions of people in the area of the United Kingdom who do not have the income for them to be able to sustain good living conditions.
When it comes to defining the exact amount of working tax credit it’s very hard to say how much one applicant would receive. Tax credits have an extensive list of conditions and applicant should suit most of these in order for them to be able to get the maximum amount of credit. But we will be introducing you to some of the basics so that you have a starting point from which you are able to start calculation.
As an extra help, the official governmental website of Tax Credits also contains an online calculation sheet where all potential applicant can see how much they are to receive. The amount largely depends on the working hours and the number of people living under one roof, especially when it comes to children. All applicants need their last year’s tax documentation, a current document form their employer to prove they hold a job and their national insurance number.
The general amount of working hours, when it comes to working tax credit vary between 30 to 16 as a minimum weekly amount of working time. This of course doesn’t mean that the applicant cannot work more. If the applicant applies for tax credit with their partner with whom they live in the same household then the amount of minimum working hours is 12 per person per week.
Is this a benefit or a donation?
While tax credit is basically a donation, it’s also a credit. This means that the credit office would start to reduce a percentage of the amount to be paid back from the time of the very first transfer. However until the applicant receives the credit - 12 months ’ time as a minimum – the amount they receive will have a way lower deduction rate and also the whole credit should only be paid back whern the tax credit period is officially over. Even from that point on applicants have the chance to extend their working tax credit or alternatively if they have a better job and are in the situation of being able to pay back the credit they can freely do so.
The application period can extend over 3 weeks’ time, therefore it needs to be started well on time. All applicants must be aware that lying, cheating, not providing proper information or not informing the tax office about any changes in their postal address, family status or income status may result in having to pay a penalty up to 3000 GBP.
For more information on tax credits call the 24/7 Tax credits helpline number or visit the official website.