Tax Credit guide

The TUC has published a guide to Tax Credits. Tax Credits are additional money from the Government to help people with everyday costs. There are two credits: Child Tax Credit and Working Tax Credit.

Child Tax Credit
Any parent or carer will get some Tax Credit if their household income is below £50,000 a year and they have children under 16 or children up to the age of 20 doing non-advanced education or some types of training.

The guide gives the example of Kirsty, who works 12 hours a week and earns £120 per week. She has two children aged 6 and 9. She would be entitled to Child Tax Credit of £90 per week.

Working Tax Credit
A worker with children may be able to get Working Tax Credit if they are responsible for a child and work at least 16 hours a week (or have a partner who lives with them who works 16 hours a week). A worker without children maybe entitled if they are either disabled and work at least 16 hours a week and get disability benefits or have recently been on benefits or it they are over 50 and work at least 16 hours a week and have been on benefits for at least six months.

In the guides example, Kieron is 32 and works 37 hours a week at £5.52 per hour. He is not disabled and doesn’t have any children. He is single. He is entitled to Working Tax Credit of about £17.20 a week.

Working Families Tax Credit Estimator

www.workingfamilies.org.uk/asp/calculator/