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Published 5 years ago by mikelanger with 0 Comments

Which is Better: Universal Credit Availed From contactuniversalcredit or The Conventional Working Tax Credit?

  • The Universal Credit scheme is essentially a monthly dole given out to employed individuals or people falling in the low income bracket. The entire allowance is made of two essential components one of them is the basic or fixed allowance. Other allowances available cover benefits for dependent children and adults, housing and a host of provisions depending on the circumstances of the individual availing the credit.

    These credits can easily be accessed on www.contactuniversalcredit.co.uk. Hence prospective borrowers of this credit must keep in mind, that in case they were availing any working tax benefits by virtue of their current source of income, their benefits get replaced by Universal Credit.

    Further, the higher they rise in the income ladder, the amount of total credit availed by them on contactuniversalcredit goes down by 63p for every extra pound earned. Similarly in case the amounts earned by the individual decrease, there’s an added increase to the credit limit as well.

    Also, this monthly working credit replaces the aid from working tax credit. Moreover to avail this credit, the employer must also report the current earnings in hand, as earned by the work the individual is involved in currently.

    How does the employer report the earnings of an individual seeking credit from Universal Credit from online platforms like contactuniversalcredit ? Employers can automatically report their employee’s earnings by uploading the salary slip of the individual in question on the government’s Real Time Information System (RTI). But of course, employees availing this scheme must first ascertain if their employers are registered on the RTI system.

    And, how must they do that?

    The employees must have access to their employer’ PAYE scheme number, and convey that to the Universal Credit Helpline. In cases, where a single person is employed with more than one employer, PAYE scheme numbers of all employers must be provided for full disclosure of income details.

    But, what if the employer doesn’t have access to this Real Time Information System?

    In such a situation, the interested individual must manually report their earnings on the very last day of his/her assessment period. The following details must be provided herein:

    • The employees PAYE reference • Gross taxable pay amounts • The name of the employer and other associated details relating to the payment, like the date of payment and the last paid amounts of tax • Amount of payments made in respect of National Insurance • If any contributions are made to any pension scheme, and if the concerned payments are made from one’s gross or net remuneration into a personal pension fund. • Earnings that are undisclosed from the current employer or employers, as the case may be.

    Therefore, while one subscribes to this form of credit from the regular Working Tax Credit, one enters into a complete and transparent agreement with the government while availing this allowance. Further the amounts allotted are better structured with all due benefits, giving it an edge over the conventional credit, thus making it preferable for users of the credit, to root for financial support.

 

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