Tax Credits
(Tax credits reduce the amount of tax you pay)
Tax is calculated as a percentage of your income. Your tax credits are deducted from this to give the amount of tax that you have to pay. A tax credit will reduce your tax by the amount of the credit.
Everyone is entitled to a personal tax credit. There are personal tax credits for:
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Single people
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People who are married or in a civil partnership
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People who are widowed or are surviving civil partners
Personal Tax Credit
Dependent on Your personal circumstances different tax credits apply to Single, Single with child/children, Married/Civil Partnership or Widowed/Widowed with no or with child/children persons.
Also dependent if you are an employee or self-employed:
PAYE or Earned Income Tax Credit
Incapacitated Child Tax Credit
An individual can claim this credit if living and providing for an incapacitated child.
Age Tax Credit
Applies to people over 65 years of age.
Dependent Relative Tax Credit
It is for a person who maintains another relative at their own expense subject to capped earnings.
Home Carer Tax Credit
Applies to a married couple or civil partnership who are jointly assessed for income tax purposes, where one spouse or civil partner stays at hoe to take care of a dependent person such as Child person aged over 65 and over. Only one home carer tax credit applies.
Other Tax Credits
Other tax credits apply such as
* Rent Tax Credit
* Widowed Person/Surviving Civil Partner Year of Bereavement Tax Credit
qualifying Child
* Fisher Tax Credit
* Blind Person Tax Credit