Credit qualification
Question
How do I qualify for Working Tax Credit? I've heard that any savings I may have could count against me. Is this true?
Answer
If you work but earn low wages, you may qualify for Working Tax Credit. However, one in four of those who are entitled to Working Tax Credit don't receive it, so it's definitely worth claiming if you think you're entitled to it.
You may receive Working Tax Credit if you're aged 25 or over and you work at least 30 hours a week (although you may be entitled to tax credit if you are aged 16 or over and work at least 16 hours a week and qualify for the disability element of the Working Tax Credit).
Any capital (such as savings) you own is not taken into consideration; however, any income from it - such as interest - will be counted. The first £300 of 'other income' is disregarded, so if you receive less than that in interest, it may not affect your tax credits. To find out if you qualify, take the tax credits questionnaire.
Finally, in order to qualify you must also have a legal right to reside in the UK.
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Question answered by CAB
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