The credit system is a way of helping people, so in real it doesn’t have that much to do with bank credits. They can be repaid but it’s not something that’s compulsory or under any contractual obligation. This is typically a welfare system specifically for those who do have a job. The UK Tax credit system is like a bridge that connects those with work and those without one. The necessity of this sort of help has drastically grown in the UK. This help also serves as a great inspiration to actually make people wanting to work, even if the job they find is not covering their full costs.
There are two main types of credits, one is called Working Tax Credit and the other one if the Child Tax Credit.
While one can apply easily for the child tax credit, the working tax credit is the one that covers the majority of applicants, as this is the credit that can help more for those who are working and it can be obtained by a larger number of people irrespectively of having or not having kids.
The current largest amount one can get with a working tax credit is annually GBP 1960. However one needs to have a very poor salary for that which doesn’t go above GBP 6240 per year.
Those with kids are required to have an official job where they work a minimum of 15 hours a week while those without work are required to hold a job where they work at least 30 hours a week.
Of course there are many other factors which play into the proper sum one can receive as a credit. The online calculator which can be found on the official governmental website of UK Government has this calculator.
What one needs is to hold their personal documents and the tax paper from last year to gain a proper insight in how much money they are eligible to get.
The working tax credit is also the way for those who didn’t yet reach 18 years of age but still having responsibility over a child. You cna contact the tax credits number helpline for help. Another important factor however is, that one cannot apply for multiple credits in the same time.
It’s been said that the whole credit system will soon be part of the Universal Credit system but there are no proper information on how this will affect the current system as a whole, especially regarding the current Work Tax Credit system.
The application period lasts over a month, therefore applicants who do not yet hold a job, but they are to within a month can apply too.
The working tax credit also offers help for those who live on pension but would like to return back to work.
Another important factor is to report all changes right away or one can lose the credit and even get penalized very easily.
The application system is easy, especially if you have internet because you can send in the online application form through the governmental homepage right away.