What counts as work for
Working Tax Credit?
Working Tax Credit is based on the hours you work and get paid
for, or expect to be paid for. It doesn't matter if you're employed
or self-employed, but unpaid work doesn't count as work when
claiming tax credits. Check if your work can help you qualify
for Working Tax Credit.
On this page:
What hours do you need to work?
You don't have children
If you're not responsible for children, you need to work the
following hours to get Working Tax Credit:
- if you're aged 25 or over, you need to do paid work of at
least 30 hours a week
- if you have a disability and are aged 16 or over, you need
to do paid work of at least 16 hours a week
- if you're aged 60 or over, you need to do paid work of
at least 16 hours a week
How
to work out usual working hours for your tax credits claim
You have children
If you're responsible for children you need to be aged at least
16, and work the following hours to get Working Tax Credit:
- if you're single, you need to do paid work of at least
16 hours a week
- if you're in a couple, your joint paid working hours need
to be at least 24 a week, with one of you working at least
16 hours a week
So if you're a couple and only one of you is working, that
person will need to work at least 24 hours a week.
If your joint working hours are less than 24 a week, you can
still get Working Tax Credit if one of the following applies:
- one of you is aged 60 or over and working at least 16 hours
a week
- one of you is disabled and working at least 16 hours a
week
- one of you works at least 16 hours a week and the other
person is entitled to Carer's Allowance - even if they don't
get any payments because they receive other benefits instead
- one of you works at least 16 hours a week, and the other
person can't work because they're 'incapacitated', an in-patient
in hospital, or in prison (serving a custodial sentence, or
remanded in custody awaiting trial or sentence)
'Incapacitated' means either of the following:
- you get certain benefits due to disability or ill health
- for example, contribution-based Employment and Support Allowance,
or Disability Living Allowance
- you receive National Insurance credits because you have
limited capability for work, and your 12 months' entitlement
to contribution-based Employment and Support Allowance has
run out
How
to work out usual working hours for your tax credits claim
If you used to get the '50-plus element'
The extra '50-plus element' stopped from 6 April 2012, for
those people aged 50 or over returning to work after being on
benefits. So if you're aged 50 or over and are now going back
to work, you'll need to work the relevant number of hours as
explained above.
So, for example, if you don’t have children you'll normally
need to work at least 30 hours a week to get Working Tax Credit.
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What counts as paid work?
If you're an employee, paid work means:
- the work you do for your employer in return for payment
(or where you would expect to be paid) such as wages
- any ‘payment in kind’ (for example groceries for a person
who works as a shop assistant, or farm produce for a farm
labourer)
If you're self-employed, paid work means any work you do for
payment (or would expect to be paid) or profit.
To claim Working Tax Credit, you should expect your paid work
to continue for at least four weeks.
How
to work out usual working hours for your tax credits claim
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What doesn't count as paid work?
If any of the following apply to you, the work won’t count
for Working Tax Credit purposes:
- you are a student and do work as part of studying for a
degree or other qualification (any grant or loan you get is
for maintenance and is not paid in return for work done on
the course)
- you are a student nurse and you get an NHS Bursary and
other grants or loans for work done on the course
- you work for a charity or a voluntary organisation where
you get no pay or you only get expenses
- you work for a local authority, health authority, charitable
or voluntary organisation caring for someone who’s not a member
of your household - and where the only payment you receive
is covered by the Rent a Room scheme
- you are on strike for more than ten days in a row
- you work in a scheme where you get a training allowance,
rather than pay - unless the allowance is taxable
- you take part in the Intensive Activity Period or Preparation
for Employment Programme - unless the payment received is
taxable
- you take part in an activity where a sports award has been
made and no other payments have been made or are expected
to be made
- you take part in an Employment Zone programme where no
other payments have been made (except for training premiums
or discretionary payments, such as fees, grants, loans or
arrears of expenses paid as a lump sum)
- you are working - either inside or outside prison - while
you're serving a custodial sentence, or remanded in custody
awaiting trial or sentence
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When to claim
You need to be in paid work at the time you make your claim,
or starting paid work within seven days of making your claim.
You will only get Working Tax Credit if you actually start this
paid work.
How to
claim tax credits
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If you're temporarily absent from work
You may still be treated as working and still able to get
Working Tax Credit when you're sick, or on maternity, paternity
or adoption leave. But you'll need to have usually worked a
certain number of hours immediately before you went on leave.
There are also other situations where you have a temporary
gap in your work, but may still be treated as working. For example,
you might not be in work for a short while because you have
a gap before starting a new job, or you've been laid off.
Working
Tax Credit when you can't work due to illness
Maternity,
paternity and adoption leave and tax credits
Temporary
gaps in work - how they can affect Working Tax Credit
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If you leave paid work - or change your hours
You may not be able to get Working Tax Credit if you:
- leave work or you start to work less than the minimum number
of hours a week for your circumstances
- leave your job and receive pay instead of notice because
you won't be counted as being in work for Working Tax Credit
purposes during that period – but if you get another job during
that time, you may still qualify based on your new job
If you’re already getting Working Tax Credit, your payments
may carry on for a short while. Tell the Tax Credit Office straight
away if your work circumstances change. This is so that they
can make sure you don't get too much or too little in the way
of tax credits.
Changes
to your working hours and tax credits
Contact
details for the Tax Credit Helpline
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More useful links
Find out more about having
children and getting tax credits
You have a disability - can you get
extra Working Tax Credit
Information
on the national minimum wage on Directgov (Opens new window)
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