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Money Problems

Tax Credits

 

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Tax credits are payments from the government to help with everyday costs. If you're responsible for at least one child or young person who normally lives with you, you may be eligible for Child Tax Credit. If you work, but earn low wages, you may be eligible for Working Tax Credit.

 

Child Tax Credit is paid to families with children, whether or not you are in work.

Working Tax Credit (WTC) is paid to people in low-paid work to help with living costs and childcare costs that they may have associated with their work.

 

Child Tax Credit

To receive this you do not have to be working, but you must be responsible for a child (under 16) or qualifying young person (under 20 and in full time education). Again this is means tested and will depend on income.

You must also satisfy the presence and residence conditions. (This means that international students do not qualify. Students from the EEA must seek further advice).

 

Working Tax Credit

Students can claim Working Tax Credit as long as they meet one of the eligibility requirements.

You must also meet residence criteria, which means international students will not qualify (EEA students should seek further advice).

The eligibility criteria are as follows

  • You must be 16 or over, have children and be working at least 16 hours a week

or

  • You must be 16 or over, have a disability and be working at least 16 hours a week

or

  • You must be 25 or over and working at least 30 hours a week

or

  • You must be 50 or over, be working more than 16 hours a week and have been claiming income support, jobseekers allowance or incapacity benefit for at least six months

 

You may also be able to claim for childcare costs, if:

  • You are a single parent, working at least 16 hours a week and incurring relevant childcare costs

or

  • You are a couple, both working at least 16 hours a week and incurring childcare costs

or

  • You are a couple, one working and the other incapacitated, incurring childcare costs

Your income must be under the threshold.  If you receive the higher education childcare grant you cannot claim the WTC childcare element as well.

 

For information about tax credits, and how to apply visit www.direct.gov.uk

Summer work.

If you are over 25,  and working over 30 hours a week during the summer break, you can claim tax credits.

If you do so, it is important that you notify the Inland Revenue of change of circumstances when you re-start University at the end of the summer. This is to avoid overpayment.

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Please be aware that we are only able to advise current or prospective students of Leeds University.

These pages are for guidance only and are not a substitute for diverse legislation that they cover. The information was checked and correct at the time of writing.

If you have any comments or queries about this page please email advice@luu.leeds.ac.uk.

© LUU Student Advice Centre June 2006


 




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