UK Tax credits: what will change in 2017?
UK Tax credits are currently the most important factors in helping people whose income doesn’t reach a certain pre-defined limit or who are raising one or more kids. Of course the changing of tax year will bring changes in some aspects of tax credits too. But first of all let’s see what is offered now as a help for those in need.
The current UK tax credit system has two major elements: the working tax credit and the child tax credit. Both work in a predefined way and they can be applied for either online on the governmental page or in either one of the tax credits offices around the UK. The taxes are paid directly to a bank account or workers union credit.
Working tax credit
This is a credit designed for those who do have or are to have a job ( within one month counting from the date of application) but whose income doesn’t or cannot cover all their obligatory costs which include rental fees, common costs and energy supply related costs. Let’s see the current conditions and benefit system:
Between the ages of 16 to 24 either having to be responsible for kid or having a disability that qualifies for the credit.
Over 25 years of age working with or without children
Working a minimum of 30 hours a week without children
Working a minimum of 16 hours a week with children
Maximum salary can be GBP 13.253 per year and those receiving less than GPB 6.420 are entitled to receive the 100% sum of the credit. The current basic amount of the credit is GBP 1960/year and one can get more in case their circumstances provide the proper background for that.
Couples can also apply jointly for the tax credit.
One cannot claim more types of credit in the same time but there are other helpful resources they can browse from.
Child tax credit
This tax credit has two elements, the family and the child element. The family element’s base is GBP 545/ year. The child element is a maximum of GBP 2.780 if we talk about a child without any disabilities.
Child tax’s sum also depends on whether someone is employed or not and on the measure of disability a child might be having. The normal tax is paid until a child reaches 16 years of age. Then there are specific elements of the tax which may help kids with school tuition fees in case they join one of the appointed educational centres or schools for studying.
Changes in 2017
The currently leaked changes for the tax year of 2017 are mainly affecting the Child Tax: Tax credits are to be reduced to help up to 2 children in the family.
Family element is to be removed from Child Tax Credit
Also, the whole tax credit system is expected to become part of the Universal Credit system which predicts further changes in the current tax system. Yopu can call the tax credits helpline number .Check for updates in the early months of 2017 on the governmental website.