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Working Tax Credit at a Glance

Working Tax Credit at a Glance

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Working Tax Credit at a Glance

The Working Tax Credit is a payment in the United Kingdom that is paid by the state for individuals who work and have a low income level. The Working Tax Credits are part of the current tax credits system, which is in turn a part of the means-tested social security benefit system.
In addition to earning a working tax credit, individuals can also be entitled to collect the child tax credit if they bear the responsibility for raising any children. The current system of the working tax credits replaced the Working Families Tax Credit system that was in operation from April 1999 through March 2003.
Despite being called working tax credits, there is no relationship between the Working Tax Credit and an individual’s tax bill. Childless couples, working individuals, and working families with dependent children are eligible to receive Working Tax Credits. The Working Tax Credit is assessed independently of the Child Tax Credit. Families are able to remain eligible for the Child Tax Credit even if the assessment determines that individuals do not meet the requirements to earn the Working Tax Credit.


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