can someone explain tax credits?

sarcycyril

hi,

I have just got married and we are thinking of starting a family, so i have been looking on the direct gov website in relation to maternity pay etc.

i am self employed so looks like i would receive maternity allowance, my husband is employed. I just want someone to explain tax credits? is this money you get off of your tax bill each month or they give you the money?

if someone can explain it to me in simple terms that would be great because im getting confused!

thanks

stef73

They give you money we get £10 a week child tax credit .

karenx

Its a credit that is given to you either weekly or monthly to help with your child. Depending on your wages and how meny children as to how much you will recieve.
There are 3 parts to it. Child tax credits where majority of people will get at least the child element which is £545 per year, and for the first year of babys life you get the baby element which is £545 again.
Theres working tax credit which both of you need to be working 16 hours or more per week to get, which is just an extra to help with your income
Lastly theres the childcare element. They will give you 80% of your childcare costs, up to £175 per week. Towards childcare only if your child is in a registered nursery or childminder. If its a family member or friend looking after the child while you work you will not qualify for this.

DX2

sarcycyril wrote: »

hi,

I have just got married and we are thinking of starting a family, so i have been looking on the direct gov website in relation to maternity pay etc.

i am self employed so looks like i would receive maternity allowance, my husband is employed. I just want someone to explain tax credits? is this money you get off of your tax bill each month or they give you the money?

if someone can explain it to me in simple terms that would be great because im getting confused!

thanks

I don't think you can do easy where tax credits are concerned!
Tax credits is an amount you get given if you meet certain conditions.

For example:
Under 25 on low income do not qualify for tax credits
Under 25 with disability on low income qualify for tax credits

Single parent on low income working 16 hours qualifies for tax credits and child tax credits and childcare element

Couple on low income over 25 must both work 30 hours per week
Couple on low income with children will qualify for working tax credits and child tax credits but each parent must work 16 hours IIRC to qualify for childcare costs.

Confusing huh, there are many many more examples that's just a brieft look into tax credits.