Tax credits information if you're coming off benefits

If you're going back to work after a period on benefits, you may be able to get tax credits to top-up your income. You could also get tax credit payments to help with the cost of childcare.

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Qualifying for tax credits

If you've recently found work or you're returning to work after being on benefits, you may be able to get Working Tax Credit. To claim you must normally be aged 25 or over and work at least 30 hours a week. But you only need to work 16 hours or more a week if you or your partner:

  • are responsible for children and one of you is aged at least 16
  • are aged at least 16 and qualify for an extra payment of Working Tax Credit because you're disabled
  • are aged 50 or over, and are going back to work immediately after being on out-of-work benefits (such as Income Support or Jobseeker's Allowance) for at least 6 months
  • are aged 60 or over

You should expect your paid work to continue for at least four weeks.

Check if you qualify for tax credits - quick questionnaire

What counts as work for Working Tax Credit?

If you have children

If you work and pay for childcare, you could get up to 70 per cent of your childcare costs in Working Tax Credit. Usually you and your partner (if you have one) have to work for at least 16 hours a week to qualify.

If you have children, you may also qualify for Child Tax Credit. You do not have to be working to claim.

You have children - can you get tax credits for them?

Help with childcare costs - do you qualify?

If you are disabled

You may qualify for an extra amount of Working Tax Credit if you meet all these conditions:

  • you must be working for 16 hours or more a week
  • you must have a disability that makes it difficult for you to get a job
  • you must be receiving, or have recently received, a qualifying sickness or disability-related benefit

You have a disability - can you get extra Working Tax Credit?

How much will you get?

You could get:

  • up to £2,650 a year, that is around £50 a week, if you are disabled
  • up to £3,780 a year, that is around £72 a week, if you are severely disabled

The amount you get will depend on other income you have coming in, such as wages, interest on your savings and some benefits payments.

If you're 50 or over

If you're 50 or over, you may be able to get an extra Working Tax Credit payment, called the '50-plus' element. To qualify, you'll need to be starting work again after being on certain benefits, such as Income Support or Jobseeker's Allowance. You'll have to be working for at least 16 hours a week, and you must also have been on benefits for at least six months.

If you were on and off benefits for short periods, you can still get the extra payment if:

  • the gap between each period was no longer than 12 weeks
  • the total time you were on benefits adds up to at least 6 months

You're 50 or over - extra Working Tax Credit payments

How much will you get?

The amount of the 50-plus element is based on how many hours you usually work. You could get:

  • up to £1,365 a year, that is around £26 a week, if you work 16 to 29 hours a week
  • up to £2,030 a year, that is around £39 a week, if you work 30 hours or more a week

The actual amount you get will depend on what other income you have such as wages, interest on your savings and some benefits payments.

You normally get the 50-plus element for 12 months from when you start back at work. But this extra payment will no longer be available from 6 April 2012. So even if it's less than 12 months since you started back at work, your extra payments will stop then.

How to claim

If you have been claiming benefits, such as Income Support, Employment and Support Allowance, or Jobseeker's Allowance, you'll get help with your claim. Your Jobcentre Plus - or in Northern Ireland, your Social Security office - will help you with your tax credits claim form.

Or you can order a tax credits claim pack from the Tax Credit Helpline. You can fill the form in yourself and send it back by post. If you need any help completing the form you can call the Tax Credit Helpline who will be happy to provide further advice.

You can't claim tax credits online.

How to claim tax credits

Contact details for the Tax Credit Helpline

More useful links

Which state benefits to report when making a tax credits claim

Other help you might qualify for if you get tax credits

How to work out usual working hours for your tax credits claim