Working tax credit general conditions

Working tax credit general conditions

In this article, I’d like to tell you more on the application conditions for working tax credit in the UK. Keep in mind that this set of conditions may fully or partially change from 2017 1st January as the credit system will become part of the Universal Credit system.

But let’s see the general conditions of application for Working Tax Credit this time:

  • Over 24 years of age and holding a job with a minimum of 30 hours per week
  • Over 16 years of age being responsible for a child and having a job with a minimum amount of working hours of 16 hours per week
  • Over 50 years of age who wants to go back to work and guarantees that it will happen within 6 months counting from the application.
  • Application for those over 25 years of age can commence a maximum of 7 days before starting a new job

The maximum amount of the Working Tax Credit is GBP 1960 per year. The limits of yearly income are GBP 14.000 per person in case of individual application and GBP 19000 in case the application is with a partner living in the same household.

There are several factors which can change this value according to the below list:

  • If the applicant is living in a couple or is a lone parent the sum is a maximum of GBP 1950 per year
  • Basic amount for one single worker - GBP 1920
  • Amount of childcare within Working Tax for one child – GBP 122/ weekly
  • Amount of childcare within Working Tax for two or more children – GBP 210 / weekly
  • Applicant has severe disability - GBP 1190
  • Over 30 working hours / week – GBP 790 / year
  • Credit for disabled worker – 2790 GBP / year
  • Return to work tax credit for those over 50 yrs old – 1365 /year

What you need for application:

  • Your tax paper of your past year’s income
  • Details of payments your child or children receive
  • The total number of weekly working hours
  • Proof of receiving any other benefits – specifically Care Component of Disability Allowance, Enhanced Daily Living Component of Personal Independence Payment, Attendance Allowance if applicant receives the highest rates of one of these.

Further conditions:

  • The applicant’s citizenship status – citizen, immigrant or refugee
  • Applicant’s benefits from Universal Credit – in which case one cannot apply for this credit
  • If applicant’s age has reached the minimum limit to apply for pension credit
  • If the applicant applies alone or jointly with a partner
  • Applicant’s age
  • Partner’s disability

Of course the condition list is not easy to get through and the calculation can also be misleading, you may need to use a Replace your Documents service. As an addition, the government has added an additional help a Tax Credits Number which can be reached anytime during the day for everyone who needs further information or clarification.