Tax Credits Explained

The most common confusion with tax credits is that they are themselves a form of tax. In fact this definitely isn't the case.

A tax credit is simply a payment that is made to you from the government, the purpose being to help you pay for the costs that you incur living your day to day life in this country.

One of the most common tax credits is called the child tax credit. If you are responsible for one or more child who lives with you, then the chances are that you will be eligible for this.

Another common type of tax credit is called the working tax credit - this is for those who work but who unfortunately earn quite low wages.

The association with the word tax is unfortunate, as the credits are pretty much as opposite as it gets, as not only are you given money rather than having it taken away, but also you can get it even if you're not a taxpayer!

Some of the other articles in this section will look at the different types of tax credit and how to qualify, so if you are interested or think that you might quality for a tax credit of some sort, then be sure to look at the other articles on tax credits.