CCM1110 - Overview: Working Hours Requirement

The basic working hours requirement is at least 16 hours per week for any worker who is part of a family with responsibility for children and/or has a disability or illness which disadvantages them in seeking and retaining work. An extra element is available if one or more persons in a family with children works at least 30 hours per week, either individually or in aggregate. Individuals or couples without children or a disability, have to work at least 30 hours per week (individually) to qualify for Working Tax Credit.

Example 3:

Anne and David live together. They have no children, and neither has a disability. Anne is self- employed working 10 hours a week and David is employed part time working 23 hours a week.

Although they work over 30 hours in aggregate, and David works over 16 hours, because they have no children, and David does not have a disability, they are not entitled to Working Tax Credit.

Example 4:

Mary and Michael are married without children. Mary is self-employed, working 10 hours a week. Michael is employed, working 32 hours a week.

As Michael works more than 30 hours a week, and their joint income is very low, they are entitled to WTC.

Example 5:

Ahmed and Mae have one child aged 7 who is severely disabled. They both work: Ahmed 16 hours per week and Mae 17 hours per week. They pay for registered childcare while they are working.

They are entitled to:

• Working Tax Credit - at premium rate as household works more than 30 hours a week by aggregation and they have a child; plus a % of childcare costs. They can choose who receives the credit.
• Child tax credit - Family element.
• Individual child element increased because child is disabled and further increased because the child is severely disabled.

The child tax credit is paid to Ahmed who they have nominated as the main carer.