Tax Credits

I wish to apply for tax credits but I'm not sure if I will qualify.

There are two types of tax credit, child tax credit and working tax credit, and these may now be available to people who previously did not qualify for the old tax credits.

Child tax credit is means tested. The amount you get will depend on your income but anyone with one child will receive some family element of child tax credit if total income is less than £58,000.

In order to claim you must be:-

Resident in the UK
Aged 16 or over
Responsible for a child

Working tax credit is also means tested and again depends on income.

In order to qualify you should:-

Be resident in the UK
Work 16 hours or more a week
Be over the age of 16 and
Either be responsible for a child or have a disability for which you are receiving a qualifying benefit
Or be aged over 50

NB If you do not have children you must be over 25 years old and work for at least 30 hours per week (or your partner works at least 30 hours)

What information will the Inland Revenue require if I claim tax credits?

You will need to provide information about your gross annual income for the current year and the previous tax year. For claims in the first year of tax credits this "previous" year will be 2001/02. Documents which may help you to provide this information could include:-

P60
P45
Payslips
Record of taxable social security benefits
Record of taxable benefits in kind eg. a company car
Details of pension scheme
Details of earnings
Proof of any disability you may suffer

If you don't have a record of what you have earned in the relevant tax years you should contact your local tax office. The tax office should be able to provide you with a letter.

You will also need your national insurance number, details of your bank account and your child benefit reference number. Remember to keep and collect information during the tax year in order to finalise your entitlement at the end of the current tax year.

I have applied for tax credits weeks ago but have not received them. Every time I contact the Inland Revenue the lines are engaged.

The Inland Revenue have made plans for emergency payments due to the massive backlog in work they are experiencing. You can either take your award letter and proof of ID

evidence of income for 2001/02
details of your children
ID

before 3 pm to Markham House, Chesterfield. You can then get up to five weeks payment over the counter.

Last updated: February 22, 2007