If you are unsure whether you are entitled to child or working tax credits, this article talks you through everything you need to know. The figures used in this article are correct for the 2015-2016 financial year.

Child Tax Credit

You are eligible for child tax credits for each child you are responsible for, under the age of 16 or under the age of 20 and in approved education or training. Every household differs as to how much tax credit one is entitled to. For 2015-2016, you could be entitled to a basic amount of £545 a year. This is known as the ‘family element’. You could be entitled to an extra amount depending on your income and circumstances including:

  • Up to £2,780 for each child
  • Up to £3,150 for each disabled child (on top of the child element)
  • Up to £1,270 for each severely disabled child (on top of the child element and the disabled child element)

Working Tax Credit

If you don’t have any children, you may still be entitled to claim for the working tax credit. You may be entitled to the working tax credit if:

  • You are 16 to 24 years old and have a child or
  • You have a qualifying disability or
  • You are 25 years old and over, with or without children

However, you do need to be working below a certain number of hours a week and earning below a specific wage for those hours to qualify. These limits are:

  • a couple without children must be earning below £18,000*
  • a single-person must be earning below £13,100*

*These limits can change depending on the circumstances of the applicant.

For the 2015-2016 tax year, the basic amount of working tax credit that you may be eligible for is £1,960 per year. You could receive more or less depending on your income and circumstances. However you may be entitled to the following ‘elements’ on top of the basic amount:

  • Up to £2,010 if you are a couple applying together
  • Up to £2,010 if you are a single parent
  • Up to £810 if you work at least 30 hours per week
  • Up to £2,970 if you have a disability
  • Up to £1,275 on top of the disability element if you are severely disabled
  • Up to £122.50 per week for one child or up to £210 per week for more than 2 children if you are paying for approved child care services

How are child and working tax credits paid?

Child and working tax credits are paid either every week or every 4 weeks from the date of your claim, up until the end of the tax year (5th April), into your bank or building society account. If you are a couple, you must choose one account. To find out whether you are eligible for child or working tax credit and for what amount you are eligible, use the Government’s Tax Credit Calculator.

If you require any further information on tax credits or have some questions about your eligibility, get in touch by emailing info@wkm-accountancy.co.uk or by calling 0115 8240 555.

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