Find Low Income Tax Credits for the UK

If you have a low income in the UK there are two government supported tax credits that you may be eligible for and the new Universal Credit that replaces all credits and benefits in certain circumstances. These credits vary in amount and are dependent upon various areas of need. You will find them all below.

Child Tax Credit
In the UK every main caregiver of a child up to the age of 16 or 20 if they are in school has the right to claim the Child Tax Credit. Whether you are employed or not, this credit is available to you, but if you are a split household, only one household can claim the credit for the child(ren). You can get money for every child you have and it will not affect your Child Benefit.

The credit is available for any parent or guardian that cares for a child full-time, lives with you with their belongings and you pay for their meals and pocket money if needed. Adopted and fostered children count under the Child Tax Credit. If your child is disabled you may be eligible for a larger tax credit.

 
The payment amount of the credit depends on your specific situation, including housing and income, if any children are disabled and if you are on any government benefits. The basic amount for a non-disabled child is £545 a year but can be as much as £2,780. The income limit for a one-child family to receive the credit is £26,100, yet it may be higher if you pay for child care or have a disabled child.

Working Tax Credit
The Working Tax Credit is meant to help out individuals or couples in the UK that are working but are still low income earners. Generally it is meant for individuals 25 or older working a minimum of 30 hours, couples where one person is working over 30 hours a week or for young people 16-24 that has a child or is disabled but is working at least 16 hours a week. Work could include as an employee or as a self-employed person.

The amount you receive will depend on your age, disability status, and if you have children. The range for the credit is £810 to £2,970 a year. Payments are paid directly into your bank or building society account every week or every 4 weeks.

Universal Credit
The UK government decided to switch to one Universal payment system for benefits and credits, but has not yet rolled it out in every location. As it does so, if you are receiving a benefit or tax credit you will automatically be notified and start receiving the Universal Credit.

The Universal Credit replaces the Working and Child Tax Credits but also Job Seeker’s Allowance, Housing benefit, Income Support, and the Employment and Support Allowance. This Universal Credit provides basic support for every situation. As such the pay-out amounts depends on your personal situation but includes support credits for housing, children and childcare, disabilities and carers.

The Universal Credit allows you to work as many hours as you can if you find or have employment so you do not automatically lose your benefits. As you increase in hours or pay, your benefit will simply decrease accordingly. This credit is applied for online. If you are dealing with unexpected financial issues, learn about different low income lending options here.