In this article I’d like to say a few words on the types and characteristics of the two types of UK Tax Credit, namely the Work Tax Credit and the Child Tax Credit. The good thing in both credits is that they are refundable and means tested governmental benefits which are currently paid to everyone who proves fit to claim it by the HM Revenue and Customs Bureau.
Brief History: The tax credit system was first introduced in the UK in 2003 at the dawn of an International Crisis that also affected millions of people also in the United Kingdom. The government came up with the idea to this way help for all those individuals, couples and families with children to get a sort of a benefit that helps them through the hard times.
Child tax credit is payable for all those who are legally responsible for one or more children who live with them in the same household. This credit has two segments: the family credit and a child tax credit segment and you can apply for is using the same generic application form which can either be downloaded and filled out on the UK governmental website, or can be obtained personally to be sent via mail. As the evaluation process is lengthy it is suggested to apply well on time.
It’s also very important to add that this tax credit has no effects on the Child benefit.
In 2015 there was a big scandal regarding Child tax credit, when the government has announced the deduction of 4.4 billion British Pounds from the total credit also making this credit a 2 cap system which means that parents get money either after one single child or after 2 or more children.
Changes: as this tax credit system will be finished by 2017 when it will become part of the Universal Credit system, it will also affect the Child Credit: from 06 April parents up to 2 children are bound to receive only the child element of today’s total tax however people who are already receiving this benefit for two or more children both or all of whom were born before 6th April 2017 they are bound to continue to receive the credit in an intact form.