Tax Credits Calculator
Is your family income under £66,350? If so, you may be entitled to benefits and tax-credits. Many are simply unaware of their eligibility, including a million plus low income pensioners who sadly fail to collect their pension credit. Yet it’s easy to do a five minute benefit check up, using a special web-calculator for the under and over 60s.
In basic terms, tax credits are payments from the government to increase income.
There are two tax credits administered by Her Majesty’s Revenue and Customs (HMRC) that provide support to individuals and families. Depending on your circumstances, you may be eligible for one or both of the tax credits.
Working Tax Credit
The Working Tax Credit is available to all workers, whether they are an employee or self-employed, and regardless if they have children or not. The amount of the tax credit is dependent on your income level, but eligibility requirements do differ depending on your age, the hours you work, and if you were disabled and on benefit, and whether you have children or not.
For individuals or couples with children, eligibility is determined if you work least 16 hours a week and earn a low income.
The following is a breakdown of the eligibility requirements for individuals or couples without children who earn a low income:
- over the age of 25 and work at least 30 hours a week; or
- aged 16 or over and you qualify for an extra payment of tax credits because you are disabled; or
- over the age of 50 and are returning to the workforce after being on benefit for a minimum of 6 months.
Child Tax Credit
The Child Tax Credit was established to support families with children. A claim can be submitted if you, or your partner, are responsible for at least one dependent child or young person (aged 16, 17, 18 or 19) who usually lives with you.
If the child or young person lives with more than one family, you and that other family must decide who has the main responsibility for the child. This person with the main responsibility will then submit the claim and receive the tax credit. If you have questions or concerns, you can contact the Tax Credits Helpline for assistance.
Additional credits are offered to those with children who have a disability or a children under one year old. If you are working at least 16 hours a week, you could get help to cover your childcare costs.
How do I claim a Working Tax Credit and/or Child Tax Credit?
There is currently only one way to make a claim, whether it is for one or both of the tax credits. You must fill out application form TC600. You can obtain the TC600 application by phoning the Tax Credits Helpline at 0845 300 3900 or Textphone at 0845 300 3909.
The completed form must then be sent back by post to:
Tax Credit Office
If you claim other benefits, such as Income Support, Employment and Support Allowance or Jobseeker’s Allowance, you may also drop off your completed form to your Jobcentre Plus – or in Northern Ireland, your Social Security Office.
How much will by tax credit entitlement be?
Your specific tax credit entitlement can only be determined after the HMRC receives your claim and calculates your tax credit entitlement. The lower your income, the higher the tax credit you will receive. However, you can get a reasonable estimate of your tax credit entitlement by using an online tax credits calculator.