CCM6630 - Particular Aspects: Work & Hours - Qualifying Hours and calculating the number of Hours Worked

At least one of the claimants must work 16 hours a week or more. They must work, either individually or in aggregate, at least 30 hours a week to qualify for the 30 hour element (an additional amount of tax credit).

Calculating the Number of Hours Worked

In the straightforward case it is a simple matter to arrive at the number of hours worked. An employee’s contract will usually state not only the minimum number of hours to be worked, but also the number of days per week, the start and finish times of each day and the amount of time to be taken for tea and lunch breaks.

There are however many situations where the calculation is more complex. Arriving at an accurate assessment of the number of hours worked by self-employed claimants, for instance, can be particularly challenging. The statute refers to the number of hours the self-employed person “performs for payment or in expectation of payment”. CCM6770 contains more detailed guidance on calculating the hours worked by self-employed claimants.

Agency workers can also present problems, particularly if they are “IR35” cases. The statute says that an agency worker’s qualifying hours are the number of hours for which an employment agency with whom s/he has a contract of employment normally pays him / her remuneration.