Tax credits

Lots of our friends are claiming tax credits and as our business profits have fallen in the recession, they are telling us to apply because we’ll probably be eligible. But how do we go about applying and are we likely to qualify?

1st March 2011

If you don’t have children, you need to at least meet the following conditions:

  • Aged 25 or over and do paid work for at least 30 hours a week
  • If you are disabled, you must be at least 16 and do paid work for at least 16 hours a week
  • If your partner or you are aged over 50 or over and are going back to work after being on ‘out of work’ benefits such as Jobseekers or Income support, you must do paid work for at least 16 hours a week

If you have children, you need to be 16 or over and doing paid work for at least 16 hours a week.

If your household’s income is less that £18,000 for the year ended 5 April 2010, you are likely to qualify for tax credits.

As covered heavily by the Press, the tax credits system will be changing from April 2011 and thereafter, households with income above £40,000 will be less eligible to receive tax credits.

To make an application to claim tax credits, you must complete a claim form which can only be ordered from the Tax Credit Helpline on 0845 300 3900. You must have your National Insurance number to hand when you call.

The above list is not conclusive and there are other circumstances to take into account. But if all of the above applies, it would certainly be worth obtaining and completing a claim form.

By Jo Nockels

Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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