In this section:
- Changes to your usual working hours and tax credits
- You've been laid off from work - how it affects tax credits
- Maternity, paternity and adoption leave and tax credits
- Tax credits when you can't work due to illness
- Temporary gaps in work when claiming tax credits
Changes to your usual working hours and tax credits
You must work a minimum number of hours a week to get Working Tax Credit - either 16 or 30 depending on your circumstances. If your usual working hours change, you should let the Tax Credit Office know straight away because it may change the amount of Working Tax Credit you get.
Number of usual working hours
To get Working Tax Credit, you must normally be over the age of 25 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 aged at least 16 and are responsible for a child or young person
- are aged at least 16 and you qualify for an extra payment of tax credits because you’re disabled
- are over 50 and going back to work after being on benefit for at
least six months
You should expect your paid work to continue for at least four weeks.
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If you’re now working fewer hours
You may need to tell the Tax Credit Office if your working hours go down. If you don’t, you may get paid too much money and may have to pay it back. Let them know straight away if you:
- were working 30 or more hours a week and are now working less than 30 hours a week
- were working between 16 and 30 hours a week and are now working less than 16 hours a week
- are part of a couple and your joint working hours are now less than 30 hours a week
- have been on strike for more than ten days
What happens to your tax credits payments depends on whether your hours have gone down temporarily or until further notice.
Your hours have gone down temporarily
You can usually carry on getting your usual tax credits payments for four weeks from the date your hours dropped - as long as you expect your hours to go back to normal after four weeks.
If you don't expect your hours to go back to normal, your tax credits will go down or stop from the date you started working fewer hours.
Your hours have gone down until further notice or for good
If your hours have gone down until further notice or for good, your tax credits payments may either go down or stop altogether. But this depends on whether your hours have dropped to below 30 or 16 hours a week.
If your hours have dropped to below 30 a week, any extra tax credits you've been getting because you work 30 hours or more a week will stop. This will happen from the date your employer told you about your hours going down.
If your hours have dropped to below 16 a week but you’re still working, you will only carry on getting tax credits for four weeks from the date your hours went below 16.
If you are no longer working
Let the Tax Credit Office know straight away if you:
- stop working altogether either as an employee or self-employed person
- are no longer working and there is a gap of seven days or more before you start another job
If you stop work altogether, you will only be paid tax credits for a further four weeks from the date of the change.
You must report these changes within one month, or you could be paid too much money (an overpayment) which you may have to pay back. You may also be charged a penalty of up to £300.
If you’re now working more hours
Tell the Tax Credit Office if your usual hours of paid work go up because you might be able to get more money. Report the change as soon as possible, because any increase in your payments can only be backdated by up to three months.
You should let the Tax Credit Office know if you:
- were working less than 16 hours a week and are now working 16 or more hours a week - as you may now be able to get Working Tax Credit
- were working less than 30 hours a week and are now working 30 or more hours a week
- are part of a couple that is responsible for one or more children and your joint working hours are now 30 or more hours a week – with one of you working at least 16 hours a week
The amount of tax credits you get depends on the amount of money you have coming in, so if increased hours also mean an increase in income, then you should tell the Tax Credit Office straight away. It may not affect your current tax credits, but it will affect how much you should be paid for next year.
Find out why it’s so important to report
a change
Find out how changes in income affect
your tax credits
How to calculate your usual working hours
To claim tax credits, you need to tell the Tax Credit Office the total number of hours you usually work and are paid for each week. If you’ve got more than one job you need to add together the total hours you work in each job. You should include overtime hours if:
- you regularly work them in your working week
- you get paid for them
If your hours are different from week to week, tell the Tax Credit Office what you and your employer agree are your usual working hours.
You may not be able to report what your usual working hours are because they change so much from week to week. This may be because you:
- do seasonal work
- only work in school terms
- work for an agency
If so, the Tax Credit Office may ask you to estimate what your usual hours will be.
Find out how to work out your usual working hours
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Contact the Tax Credit Office
If you need more help you can call the Tax Credit Helpline which is open from 8.00 am to 8.00 pm, every day except Christmas Day, Boxing Day, and New Year's Day.The numbers you can ring are:
- tel 0845 300 3900
- textphone 0845 300 3909 – if you are deaf or have a hearing or speech impairment
If you’re calling from overseas you can also contact the Tax Credit Office on Tel + 44 289 053 8192.
More useful links
Tax credits: how and when to report
changes
Find out
how work can help you qualify for tax credits
You have
a disability - can you get extra tax credits
