Get to Know the Benefits from Tax Credits

There are different benefits for people who work less than 16 hours a week and for people who work 16 hours or more.

How will the tax credit be calculated based on hours or work?

If you have more than one job, you should add the hours from both jobs together.However, if the number of hours you work changes from week to week, your benefit will depend on your average hours. If you are not sure about how many hours you work will be treated for benefit purposes, you should consult an experienced adviser

Tax credits if you work less than 16 hours

You can claim Income Support or Jobseeker’s Allowance if you work less than 16 hours per week.  This situtaion will turnaround if you have a partner living with you and works 24 hours a week or more, and thus you will not be able to claim these benefits. The next option therefore will be for the partner to claim Working Tax Credit. You can also investigate the options of Housing Benefit and Council Tax Benefit to help with the costs of rent and Council Tax. If you have children, you can claim Child Tax Credit and Child Benefit. You can get these benefits irrespective of you work or not.

What will happen to the benefits if you work 16 hours or more a week

For people who work 16 hours or more per week, Working Tax Credit will be applicable. This will once again depend on your circumstances and how much money you earn. You may also be entitled to other benefits if you are on a low pay such as Housing Benefit and Council Tax Benefit to help with rent and Council Tax. If you have children, you are entitled to Child Benefit and you may also be entitled to some Child Tax Credit. Though you don’t have to be working to get Child Tax Credit, your earnings will affect the amount you get.

Working Tax Credits

The Working Tax Credit allows a chance for you and your partner if both of you are working enough hours a week but still your income is low enough. You don’t need to have children to qualify. You must be living in the UK. If you are from abroad, you may have difficulty claiming Working Tax Credit depending on your immigration status.

The number of hours a week you have to qualify for the Working Tax Credit depends on your circumstances. There are five different ways you can qualify:-

  • If you are 16 or over and you work 16 hours or more a week, you can get Working Tax Credit if you are responsible for a child or young person
  • If you are 16 or over and you work 16 hours or more a week, you can also get Working Tax Credit if you are disabled, and you get a qualifying benefit
  • If you are 50 or over and you work 16 hours or more a week, you can get Working Tax Credit if you were getting certain benefits for at least six months before you started work
  • If you are 25 or over and you work 30 hours or more a week you may get Working Tax Credit. In this case, you do not have to have a child in order to claim, but you do have to work enough hours
  • If you work 16 hours or more a week and are aged 60 or over.

Working Tax Credit if you are responsible for a child

In a situation where you are  responsible for a child or young person, you can get Working Tax Credit provided you work at least 16 hours a week and your income is low enough. A child is someone under 16, and a young person is someone who is 16, and still in full-time education up to A level or equivalent, or on certain approved training courses.

However, you need to be responsible for that partricular child or young person if they normally live with you or you have main responsibility for their care. You cannot usually claim Working Tax Credit if your child is in local authority care. In the case you are on maternity leave, paternity leave or adoption leave and you normally work 16 hours or more, your right to claim Working Tax Credit before you go back to work will be alive as long as you are responsible for a child. If it is your first baby and you are not responsible for any other children, you will have to wait until the child is born, or comes to live with you before you can claim.

To learn more about tax credits

http://www.hmrc.gov.uk/TAXCREDITS/

To seek advise on your eligible tax credits

http://www.kvsaccountants.co.uk/

If you have any issues with your tax credits and any help with the tax issues contact KVS Accountants. We at KVS serve as accountants in Hammersmith, Chelsea, Southfields, Earlsfield, Putney and Putney Heath

 

Tags: , , , , , , , , , ,