Can I get Tax Credits and how much?
I try to stay away from the serious nitty grippy tax issues on Cash Savvy Tips but I believe the question “Can I get Tax Credits” definitely needs an answer. Its such an important source of income boost for so many people and one that really does need to be promoted to people who don’t know they are entitled to it.
Tax Credits are there to give your income that much needed boost if you are on, what is deemed, a low wage. There are many elements to the Tax Credits system. However they are all part of the same claim.
Depending on your circumstances and income will determine which elements you will get and how much. When you do apply, expect at least several weeks or more for the claim to be fully processed, especially at busy times.
In certain areas and for some people, Universal Credits are already in force and will eventually replace Tax Credits for everyone. Until you are told however, continue to claim tax credits as normal.
The nitty gritty
As I’ve always made fully aware on Cash Savvy Tips, I hate the nitty gritty! I feel that too many budget and saving sites go down the path of tax jargon and I try to keep it all light hearted. I will however try my best to explain the Tax credit system in the most simple form I can and what will determine your claim amount and eligibility, as it is literally thousands of pounds to some people.
Here goes… Can I get Tax Credits?
One of the biggest factors to how much you can claim is if you have children or not. By children I mean under 16s or under 20 if they are in full time education and still a dependant of yours. The reason for this is because you are then entitled to Child Tax Credits as well as the Working Tax Credits, that is of coarse if you work the correct amount of hours and are on below the threshold income. Currently if you have children you are expected to work at least 16 hours if single or over 24 hours if your are a couple with one of you completing the 16 hours. The income threshold is different depending on how many children you have but for 1 child, if you earn less than £26100 then you should be entitled to at least some credits. This threshold increases fairly drastically for more children so its always worth checking the official gov.uk calculator to check eligibility.
If you pay for childcare, you can also claim up to £122.50 per week for one child or £210 for more children. That is however just the cap, you have to be paying more than that per week to obviously claim it back, as you can only claim back 70% of your childcare costs back under this scheme. Both parents must be working over 16 hours a week and be on less than £46000 a year to claim this.
All of the figures and hours etc are all based on circumstances however. For instance if you are disabled, you wouldn’t be expected to meet many of the requirements. You would also therefore be entitled to the Disability element. Single parents are also able to claim additional elements, as are people with children that are disabled.
It may be sounding very much like a family and children dependant income boost, but that isn’t quite true. If you are over 25 (it is however 16 and up for people with children) and on less than £13000 then the chances are you may also be entitled to some working tax credits also. If you are a couple then this figure is around £18000. You will again be expected to work over 30 hours a week, or 16 if you are over 60.
If your Income changes then you really must let the Tax office know as you are likely to be over or under paid. The first £2500 difference is often not taken into account however.
These credits make a huge difference to so many people. So what are you waiting for? Head over to the official Gov website and check if you are missing out on that much needed income boost. It could be worth thousands.
Check out the entitlement tables here
I hope I have some what answered the question of “Can I get Tax Credits”. I do apologise that the usual amount of detail has been left on the side line but this really isn’t our usual subject. I just felt that it needed discussing after hearing of so many people still not claiming what they are rightfully entitled to.
If you have an in depth, accurate article on the subject then please do get in touch as I would love to link up.
In the meantime, if you find that you are eligible for Credits then please check out the Surestart Maternity Grant and Marriage Allowance, as you may well be entitled to them too at the right time.
The Cash Savvy Tips Team
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