UK Tax Credits - Workers Credit application and calculation

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UK Tax Credits: Workers Credit application and calculation

Tax credit can be a great help for many, but sometimes its calculation is not an easy thing to do. While the UK government has a ready-to-go calculation sheet available on its website and there is a Tax Credit phone number which can provide with further assistance, we thought to comply a list of what the applicants need to have or need to count with and other conditions that may arise upon the application.

What you need on the first place:

You will need your last years’ tax paper and an additional documentation on your employment with the salary expected also to be enlisted. If you dont have access to these forms then you may need to contact your employer for replacement p60 docs.

The tax paper would first of all enlist all the below information that play the largest part in calculating the Working Tax credit:

Total wage:

the amount of the total gross income for the year Employee benefits: any extra benefits (food ticket, public transportation support etc.) Tips: only at places where they are properly counted and not counted as part of the salary already.

Severance payment:

only in the event when the total amount exceeds GBP 30.000

Earnings from outside the UK:

any official payment being a result of an occupation outside the UK. The sum always to be included in British Pound

Deductible amounts:

these are the amounts which can be deducted from the gross salary you received, therefore they count in the calculation of the Tax Credit.

Any maternity or paternity benefits - up to a maximum of GBP 100 per week The below only to be included if you weren’t reimbursed at work: Further work expenses

Any fees and official subscriptions paid by you as a result of your occupation

Any outstanding liabilities and insurance payments

Any agency fees

Home maintenance costs

Extras – always include the gross amount

Pensioners’ benefits

Any official donations to any charity via Gift Aid

The applicant must always be aware that they cannot straight-on count with the receiving of one exact, pre-defined sum as everyone’s situation is judged and evaluated differently.

Other amounts which may add up to someone’s income:

Government /State pensions

Personal pensions

Interest gained on bank savings

Any financial Income on investment

Any financial Income gained on your own property – renting out property etc.

The exact paperwork you need for the application:

the tax paper of your past year’s income

Receipt or declaration of payments your child or children receive Paper from employer confirming the employment status along with the total number of working hours/week.

Proof of any other benefits – specifically the following: Care Component of Disability Allowance, Enhanced Daily Living Component of Personal Independence Payment, Attendance Allowance if applicant receives the highest rates of one of these.

Further conditions on application:

The applicant’s own status of citizenship – citizen, immigrant or refugee If the applicant has reached the age to apply for pension credit The conditions are different for single and for joint or partner applications.

One can obtain more tax credits in the same time except for the Universal Credit.

Each applicant receives a tax credit number which will serve as a reference number all along.

UK Tax Credits - Workers Credit application and calculation