Working Tax Credit (Info)

People with children or a disability can qualify for Working Tax Credit ( WTC) if they are working at least 16 hours. For couples at least one partner must work 16 hours per week.

People without children or a disability can qualify if they are aged over 25 and work at least 30 hours per week.

WTC is made up of various elements

• Basic element

• Disability element

• 30 hour element

• Second adult element

• Lone parent element

• Severe disability element

• 50 plus element

• 50 plus, 30 hour element

• WTC child care element (worth 80% of allowable child care costs (up to a limit)

General conditions of entitlement

A person is entitled to WTC if they

• Are working on the day of claim

Or

• Have an offer of work which has been accepted at the date of the claim and the work is expected to start within 7 days of making the claim

And they

• Have reached the age of 16

• Are working for 16 hours or more a week (in a two person claim, both partners must be at least 16)

• Are either responsible for a child or, are disabled

Or they are

• 25 years of age or over

And

• Are working for at least 30 hours per week (in a two person claim the other person must be at least 16) and

• The work is expected to continue for at least 4 weeks after the date of claim

And

• The work is done for payment or expectation of payment

When an award is set it can run until the end of a tax year when entitlement is reviewed. However, if there is a change affecting the maximum amount of tax credit available the tax credit award can be adjusted from the point of change.