MONEY COMMENT
The New Working Tax Credit

By Jane Mack (TMFJane)
April 8, 2003

Earlier today, just for fun, I filled in a form on the Inland Revenue website to find out if my husband and I qualified for the new Working Tax Credit. To my utter amazement, I discovered that we did! In theory, anyway.

So astonished was I that I filled in the form again just to be sure because, between us, we have a pretty reasonable income and the new WTC is supposed to be for people on low incomes. Our joint income is not 'low' by any stretch of the imagination and, to be honest, the preliminary form is so basic that it doesn't take a lot of other factors into account such as savings. Besides, I know perfectly well that couples without children will generally only qualify if they're earning less than about £15,000 and we're a long way from that.

Nevertheless, many families, particularly those with children, may well find they do qualify. For a start you have be employed or self-employed and to work for more than 16 hours a week. You don't have to have children but the amount you get depends on the total household income and how many hours you work. If you do have children then you'll get a fair bit more.

Apart from the basic element available to all who qualify, there are extra elements payable if, for example, you're a single parent, if you or your partner work more than 30 hours a week, if you or your partner have a disability or if you have childcare costs

If you receive the childcare element of Working Tax Credit, this will always be paid alongside payments of the Child Tax Credit, directly to the person who is mainly responsible for caring for any children.

As I said, if I went ahead and filled in the detailed form my husband and I would be told we didn't qualify, not least because our savings alone would discount us from the scheme, but it just goes to show that even if you don't think you're eligible it's worth double-checking just in case.

More Info: Inland Revenue Tax Credits web site | The New Child Tax Credit