Tax season is a busy time of the year. For some people, it can also be a very confusing time of the year if you don’t know which credits you can claim on your taxes. The working tax credit can be claimed by individuals who work a certain number of hours weekly. There are various other factors that affect this tax credit, including overall income and circumstance. Recently, the working tax credit has been swapped out by the universal tax credit. This does not apply to all people, however.

Individuals ages 25 to 59 must work a minimum of 30 hours per week in order to claim the working tax credit. Senior citizens ages 60 and over must work at least 16 hours every week for this credit to be claimed. Both single parents and disabled persons have a minimum requirement of 16 hours worked weekly for the credit.

Types of employment that count for eligible working tax credit include working for others and self-employment. If the individual is self-employed, their business must be above the profit margin and be commercial as well. All company logs and data should be kept securely. This includes receipts, statements, and other information supporting self-employment income. HM Revenue may not always require proof of such documents. However, if your hourly earnings from self-employment is not greater than the country’s minimum-wage, this increases the chance of an audit.

The general amount that is paid out from the working tax credit is €1,960 annually. This amount can fluctuate depending on living circumstances and work earnings. For example, a person with a disability can earn up to €3,165; while single and non-single parents can earn up to €2,010. There are different tax credit calculators that can aid in estimating your refund. It is recommended to see a tax specialist though.

The tax credit for the individual is distributed via direct deposit. If the tax credit is being paid to a couple, only one account must be selected for payment receiving. If the circumstances of the payment receiver changes throughout the year, it is their duty to report such changes. There are a few exceptions to the working requirements for this tax credit. These include women who are on maternity leave, sick pay, and a person who is in between jobs. Visit https://www.gain.org.uk/working-tax-credit/ for more details.