What are tax credits?
There are two types of tax credits – working tax and child tax credit.
Working tax credit is given to people who are on low incomes or are registered as disabled.
Child tax credit is given to adults who have children under 16 who are dependent on them.
You do not need to have children to claim working tax credit. However, you must already claim working tax credit to get child tax credit.
The exact amount of working tax credit you get depends on your circumstances, but you are entitled to a basic amount worth up to £2,280 a year.
There are then additional elements that can increase your entitlement. For example, if you have a disability you could get up to £3,685 a year.
For child tax credit, the amount you get depends on when your children were born.
If your kids were born before April 6, 2017, you could get the “child element” of child tax credit for all of them.
You’ll also get the basic amount, known as the “family element”.
Universal Credit has already replaced tax credits for new claimants, but many households have not made the switch over yet.
Everyone should be transitioned over to Universal Credit by 2024, the government has said.
