Examining The Expected Changes When It Comes To Working Tax Credits

If there is one area of finance that experiences constant changes, then it's the issue of taxes. Although the ethics and the basic principle have remained constant year in and year out, the laws keep on changing every now and then. The working credits in the UK are not in any way different. Starting from the 6th of April 2012, the laws that relate to the working tax credits will be adjusted; you therefore need to be fully equipped with the information that relates to these changes, so that you are not caught off-guard once the time comes.

Currently, there exists a child credit for parents who are earning less than 41,300 pounds, and who have at least one child. Coming next year on the 6th of April, the minimum that will be required for you to get a tax break is 26,000 pounds. On the other hand, if you have two children, then you will only receive the tax credit if your income is less than 32,000 pounds.

One thing that you need to take into consideration is the fact that these limits are not cast in stone. There are times when you can be earning more than the limits set above, but still be eligible for tax credit because of the fact that you may be having more than two children, or because of the fact that the law allows does allow you to pay for approved childcare.

Now, apart from the conditions above you also need to be aware that the eligibility criteria for getting the tax credits has also changed in terms of the threshold in terms of working hours. Currently, you are entitled to working tax credits if at all you work for at least 16 hours in a single week and if at all you have one child. In future - as from the 6th of April next year - you will only be allowed to get the tax break if at all you work for at least 24 hours every week. The 24 hour minimum applies in the sense that it needs to be cumulative. If at all only one person in the house does work, then you can be quite sure of the fact that you will not be able to receive the child credit unless the amount comes to at least 24 hours in a week.

It is however important to take note of the fact that the figures mentioned above have not been settled upon, but they are still tentative.