FAQ regarding working tax credit and child tax credit

There is a definite confusion when it comes to claiming any sort of a tax credit, especially these days, when the whole credit system is to change to the Universal Credit system. However up until now, applications for working tax credit and child tax credit did not change. How your claim will be evaluated and what form of tax credit can you get always depends on the region and of the circumstances. Let’s see some of the key questions regarding both tax credits:

Can I get working tax credit and child tax credit in the same time?

If you give birth to a baby you can obtain child tax credit if your status remain officially employed at your workplace. According to the current situation the following credits and benefits may apply to you:

Child tax credit up to GBP 3325 / year

Tax credit specifically for childcare while you work up to GBP 122.50/week for 1 child

Up to GBP 210/week for 2 or more children.

Working tax credit Up to GBP 1960/ year

You can continue to get a working tax credit while opting for a child tax credit up until the first 39 weeks of your maternity leave. This can also equal the period of the ordinary maternity leave in certain cases.

In order for you to get working tax credit in addition to childcare or child tax credit you must prove that your working hours are between 16 to 30 hours per week before you leave for maternity leave.

How to count how much tax credit you can get:

There is an online calculator on the gov.uk website which will give you an accurate information on the sum you are to get, however if you have any questions or you are in a specific situation then you are advised to call the Child Tax Credit Helpline for more information.

How to apply?

The tax credit claim form can be found either online on the gov.uk website. This does not mean you can submit the real claim form however. This is only an online request to receive one that you are to fill out manually. To make the process faster you are therefore advised to obtain a claim form in person from your local Tax Credit Office.

When it’s best to apply?

For child tax credit you are advised to apply one month before you give birth. This way, the claim will be backdated according to the proper date. Note that the whole process may take more than a month, therefore it’s best to apply on time. If you don’t do that the claim will only be backdated with a month which may mean you lose out on an additional month.

For working tax credit you can apply as soon as you hold the paper confirming that you will surely start working on a specific date.

Can other benefits affect the amount of tax credit?

Yes, they can that’s why you need to let the Tax office know of all the benefits you are receiving.