Working Tax Credits - text version

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Working Tax Credits

What is it?

The Working Tax Credit is a payment to top up the earnings of working people on low incomes, including those who do not have children. There are extra amounts for working households in which someone has a disability. It is available to employees and self-employed people, and includes support for the costs of qualifying child care.

The Working tax credit is a means tested benefit that is paid to help out low-income households. If you are single, then you will need to claim for yourself. However, if you are a member of a couple, then you will have to make a joint claim with your partner.

The amount you receive depends on how much money you have coming into your household each year. If you have any savings, they will not affect your claim. However, if you receive interest from your savings this will be counted as income and may affect the amount you receive.

Working Tax Credits are paid by the Inland Revenue.

You are entitled to claim Working Tax Credits if you or your partner are:

Aged 16 or over, and work 16 hours or more a week, and are responsible for a child.

Aged 16 or over, and work 16 hours or more a week, and have a disability for which you are receiving a qualifying benefit.

Aged 50 or over, working 16 hours or more a week, and have started work up to three months before you make a claim, and for the six months before starting that work have been receiving certain benefits.

Aged 25 or over and are working 30 hours or more a week.

How much will I get?

The maximum amount that you can claim will be worked out by adding together various elements depending on your own circumstances. The amounts you could receive, and the elements are:

Ł1,665.00 for the Basic element.
Ł1,640.00 for the Second adult element.
Ł1,640.00 for the Single parent element.
Ł680.00 for the 30 hour element.
Ł2,225.00 for the Disability element.
Ł945.00 for the Severe Disability element.
Ł1,140.00 for the 50 plus element, working at least 16 hours, but under 30 hours.
Ł1,705.00 for the 50 plus element, working 30 hours or more a week.
Up to Ł175.00 a week for the Childcare element, for one child.
Up to Ł300.00 a week for the Childcare element, for two or more children.
The percentage of Childcare costs covered by the Working Tax Credit is 80%.

How do I apply?

You will need to complete an application form in order to claim your Working Tax Credit.

Where do I apply?

In order to make a claim for the Working Tax Credit, you should contact the Inland Revenue help-line on 0845 300 3909, or visit their website at:

www.inlandrevenue.gov.uk/taxcredits

Disclaimer, Target Audience, Jurisdiction Last updated & checked: 10/04/2006