What is Working Tax Credit and How to Qualify for It?

By Fiqueroa Mcmurray

Working tax credits are a top-up benefit which are payable if you´re working at least 16 hours per week and you´re earning low income. It doesn´t mean that it is a tax allowance; however, it is a non-taxable benefit. This is ordered by HM Revenue and Customs.
You can obtain working tax credit if you´re already working or you´re about to begin to work in the next 7 days. Then working tax credit will normally discontinue when you´re not working. But in some instances, you´ll be considered working even you´re not a work, for instance, when you´re on a maternity or sick leave.
Eligibility Rules of Working Tax Credits
Aside from working at least 16 hours per week or more, working tax credit is payable if you are also:
? Responsible for a child or children
? A disabled worker and you are presently on certain benefits associated with disability, or you have been on certain benefits before. You should also have a disability that makes you unable to work.
? 50 years old or above and you´re going to return to work after 26 weeks or more on certain benefits. However, this assistance only lasts for a year.
? 25 years old or above and have at least 30 working hours per week.
You may be eligible under more than one of the qualifications. Remember that if you qualify just because you´re more than 50 and returning to work, the working tax credit will be discontinued after one year.
If you qualify for working tax credit, you will only be paid if you´re earning low income. Unlike with several other benefits, there is no limit on the capital like savings that you may have for you to receive working tax credit. However, it will be taken into account any taxable income from your capital.
Child Tax Credit and Working Tax Credits
Working tax credit is payable together with child tax credit. If you are eligible for both, it´s possible that you can claim the two of them. You are required to be working to obtain working tax credit, however, you can obtain child tax credit whether you have work or not. You can get it if you´re earning low income and you´re responsible for a child.
Child tax credit as well as the working tax credit is computed yearly, with the use of your gross income. Your income from the last completed year is normally the basis of the computation, however in some instances, your income for the present year is used, for instance, when you are presently earning lower than you earned in the previous year.

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