What Are Working Tax Credits (WTC)?
There are two types – Working Tax Credits and Child Tax Credits.
Tax credit is not a tax it is a payment from the Government to help with everyday costs, paid directly to you via any Bank, Building Society or Savings A/C’s that accepts direct payment.
Working Tax Credit – Do I qualify?
- If you have children, you must be at least 16 years of age, and you must normally work at least 16 hours a week.
- If you don’t have children, you must be at least 25 years of age, and you must normally work at least 30 hours a week (if you are in a couple, your joint paid working hours need to be at least 24 a week, with one of you working at least 16 hours a week).
- If you have a disability (disability clauses apply) that puts you at a disadvantage in getting work, and you receive (or have recently received) certain social security benefits because of your disability, you can qualify if you are at least 16 and normally work at least 16 hours a week.
- If you are aged 50 or over and returning to work for at least 16 hours a week after having been out of work and receiving certain benefits.
- If you are aged 60 or over, you can qualify if you normally work at least 16 hours a week.
The amount you actually get depends on your household income.
What are the thresholds? (Tax year ending 5 April 2012)
- If you have children and you are earning below £41,300 gross per annum.
- If you are a single earner with no children and you are earning below £12,900 per annum.
- If you are a couple with no children and you are earning below £17,700 per annum.
From the 6th April 2012 these limits will be lower for most people.
For further information on entitlement tables, how to apply/ re-new your tax credits claim or any other questions we are always pleased to help.