Tax Credits are funds that are paid out by the government. Two most common types of tax credits available is the Working Tax Credit and the Child Tax Credit.
Working Tax Credits
If you are working enough hours for a week but still earns a low income, then you are qualified to avail of Working Tax Credits. There are four different ways you can qualify for a tax credit:
a. If you are 16 years old or older and is responsible for the care of a child or a young person
b. You are a disabled 16 year old or older and working for 16 hours a week, then you also get a qualifying benefit.
c. You are 50 years old or older, and working for at least 16 hours a week.
d. And lastly, you are 25 years old or older and is working for at least 30 hours a week.
Child Tax Credits
Child tax credits can be availed by people who have children, regardless of their employment status. You are entitled for a child tax credit for each child. If you are somebody who is at least 17 years old or somebody who is in full time education around the age of 19, they you are entitled for a child tax credit. You may also get a tax credit for a young person who is under 18 and registered with the Career Service, if by some event has caused them to leave school within the last 20 weeks.
Claiming Tax Credits
If you want to claim for tax credits, you can either call your local designated tax firm or by filling up a claim form. It is important to file your claim as soon as you are entitled to the tax credits as you can only claim any due amount that is dated 3 months before submitting your claim.
To ensure smooth processing of your claim, please make sure to have these information close to you:
a. National insurance number
b. Child benefit reference number
c. Wage slips for the last tax year you were employed
d. For the self-employed: Details of income for the last tax year and your unique tax reference number
e. Details of any benefits you’re entitled to
f. Details of other income you get such as savings, pensions, etc.
g. Childcare payments you make if you use a registered or approved provider
h. Details of the bank or building society where you want your tax credits to go to.
