You may be eligible for tax credits if you fit into the following criteria:
– If you are responsible for at least one child or young person who normally lives with you, you may qualify for Child Tax Credit.
– If you work, but earn modest wages, you may qualify for Working Tax Credit.
In both cases the amount of your claim will depend on your income.
As always there is a minefield of small print to negotiate before you can establish if you have a valid claim.
Generally speaking you may qualify for some element of tax credit if the following circumstances apply:
- You will need to live and work in the UK
- Be aged 16 years or over
- If you don’t have children and you are under 25, you probably don’t qualify for tax credits unless your partner is 25 or over and they normally work over 30 hours a week.
- Your household income must not exceed £58,000 per year. Household income means money you (and your partner if you have one) have coming in each year including:
- your wages and benefits from employment
- any earnings from self-employment
- any interest on savings and investments you have
- some, but not all, state benefits
- money from abroad
- money from property you own, e.g. rent
It does not include money that other members of your household have coming in.
If your income starts to fall as a result of the current slow-down you may become eligible to claim tax credits.
It is important to realise that as a business owner to a degree you can manipulate what your income is, by purchasing capital assets (eg plant and equipment) or by making pension contributions.
Please don’t hesitate to contact us if you would like more information or to chat about this subject.