As a single parent, there are various methods of obtaining suitable financial support. This blog specifically relates to Working Tax Credit, which has been designed to assist those on low income.
Are you eligible?
You are able to claim a working tax credit whether you are employed or self-employed. You will receive an additional £1,960 per year plus extra elements depending on your particular circumstances, such as having a disability or paying for childcare.
However you cannot claim this credit if you are already in one of the areas in which the new Universal Credit applies.
For single parents the relevant condition is that you must work for a minimum of 16 hours. Should you be eligible, the tax credit you receive is free of tax and national insurance.
Annual income thresholds are also applied to the claim. There’s no set limit for income because it depends on your circumstances.If your annual income is below £6,420 pa, you will be entitled to the maximum claim.
If you work at least 16 hours per week and also pay childcare, you may be able to claim the ‘childcare element’ and receive up to 70% of your costs.
If you believe you may be entitled to this credit and have not already been contacted, you should call the Tax Credit Helpline on 0345 300 3900.’
For more information on a working tax credit, please visit https://www.gov.uk/working-tax-credit/eligibility
Please contact us if you need more support on Finance and Accountancy.
Nick Parkes
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