Tax Credits - are you eligible?
For those who are self-employed finding a good balance between regular weekly income and one-off projects can be a difficult one. But did you know that you may be eligible to claim Tax Credits to supplement your income if they fall below the required threshold? Some people who believe that Tax Credits can only be claimed by those with children. That is not the case, as there are two types of Tax Credits: child tax credit - for those with children - and working tax credit - for those who work.
It is thought that there are thousands of individuals missing out on extra money that can help them through this tough economic climate. But how do you know if you are eligible? There is a certain criteria that you will need to
You have to be 16 or over to qualify and for those who do not have children the age required is 25 and over.
There are three sets of working hours that are taken into account depending on your age, your status as an individual and a parent - 16 hours, 24 hours and 30 hours.
16 hours - for single individuals with 1 or more children, those 60 years and over.
24 hours - for couples with 1 or more children where one partner is working at least 16 hours.
30 hours - for single individuals aged 25-59 years.
There is no set income level as each claim is based on personal circumstances but work does need to last for at least four weeks. The income earned in the previous tax year (April to April) is used to calculate how much, if eligible, your tax credit amount for the year will be.
Self-employed individuals will need to ensure their accounts are up-to-date and have been submitted to the HMRC to avoid any unnecessary delays as it is their net profit figure that is required.
If a claim has been successful payment is generated on a weekly basis direct to your bank account. Each year claimants are sent a renewal pack that they are required to complete before the 31st July deadline date to avoid payments being stopped. HMRC also require claimants to inform them of any change of circumstances that may affect their claim for tax credits, which include income changes (including hours), address details, relationship and parental status.
For further information and to find out how to make a claim please follow the link below to be taken to the relevant page: