Tax credits in the UK are designed to reduce the tax liability of a taxpayer. This means that if a person in an ordinary situation was to pay a certain amount, the tax credits ensure that the person pays an amount that is lower that what he or she would have paid in ordinary circumstances. Tax credits exist in two forms: the Working Tax Credit and the Child Tax Credit.
There are times when someone is eligible for one of these while there are other times when one is eligible for both of them. In only 1 out of 10 circumstances do we find someone who is not eligible for either.
When it comes to the Working Tax Credit, you get some money from the government, because of the kind of work that you do (if it is low wage or if you work for very few hours.) The other type of tax credit is none other than the Child Tax Credit. Now, Child Tax Credit is given to you if at all you have at least have one child living with you, or you have a person who is under sixteen years and whom you are taking care of. The case of the child tax credit is unique in the sense that one does not need to be working for one to get the credits.
The Determinants Of The Amount Of Child Tax Credit
Many things determine the amount of money that you will receive from the government. For the government to determine how much money you should earn from the government in terms of child tax credit, the HMRC will have to look at things such as the number of children that are living under your care, your age, whether you are married, or whether any of you has a form of disability. However, we have three main bands that determine the amount of tax relief that you receive. With these bands, there is a limit whereby, if you earn more than a certain amount, you will not receive any tax credits. For people with children, the limit is £41,300, for singles without children, the amount is £12,900, and if you are a couple and you do not have any children, the amount is £17,700.
The exact amount of money that you are to receive from the government can only be determined after you have made your claim. This is something that you must do if at all you want to know how much money the government owes you.
There are times when someone is eligible for one of these while there are other times when one is eligible for both of them. In only 1 out of 10 circumstances do we find someone who is not eligible for either.
When it comes to the Working Tax Credit, you get some money from the government, because of the kind of work that you do (if it is low wage or if you work for very few hours.) The other type of tax credit is none other than the Child Tax Credit. Now, Child Tax Credit is given to you if at all you have at least have one child living with you, or you have a person who is under sixteen years and whom you are taking care of. The case of the child tax credit is unique in the sense that one does not need to be working for one to get the credits.
The Determinants Of The Amount Of Child Tax Credit
Many things determine the amount of money that you will receive from the government. For the government to determine how much money you should earn from the government in terms of child tax credit, the HMRC will have to look at things such as the number of children that are living under your care, your age, whether you are married, or whether any of you has a form of disability. However, we have three main bands that determine the amount of tax relief that you receive. With these bands, there is a limit whereby, if you earn more than a certain amount, you will not receive any tax credits. For people with children, the limit is £41,300, for singles without children, the amount is £12,900, and if you are a couple and you do not have any children, the amount is £17,700.
The exact amount of money that you are to receive from the government can only be determined after you have made your claim. This is something that you must do if at all you want to know how much money the government owes you.