Tax credits are state benefits that pay additional money to people on a low income, responsible for children, and disabled workers.
There are two types of tax credits: working tax credits and child tax credits. You might be eligible for one or both of them, depending on your circumstances. If so it will put more money in your pocket.
Tax credits are tax-free and you don't have to be paying tax or National Insurance to qualify. But the award varies depending on a means test. Whether you qualify and how much you get depends on your household's income and circumstances during the previous tax year.
- For one child: you may be eligible for some tax credits as long as your household income for tax credit purposes is less than £26,200 a year before tax.
- For two or more children: this figure is £32,900. Childcare expenses may entitle you to tax credit if your income is greater than this.
You may still qualify if you don't have children, as long as your income is around £13,250 or less before tax, or you are single and work at least 30 hours a week. If you’re part of a couple and work at least 30 hours a week, the income threshold for both people is £18,023 a year before tax.
Disabled workers may qualify for working tax credit even if earnings are more than the threshold.
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For further information on Tax Credits use the links or contact number below, or contact your Account Manager at Curo.