In this section:
- What are tax credits?
- Tax credits - do you qualify?
- What counts as a couple for tax credits?
- Children, childcare and tax credits
- Work and tax credits
- Disabled people and tax credits
- Can you claim tax credits if you live outside the UK?
- Going abroad temporarily and claiming tax credits
- New arrivals to the UK and tax credits
- Tax credits information for the over 50s
Tax credits information for the over 50s
If you're over 50 and starting work again after being on state benefits, you may be able to get extra tax credits. To qualify, you'll have to be working for at least 16 hours a week.
Who can get the extra payments?
To qualify for the 50-plus tax credit you must be:
- starting work straight after coming off certain state benefits
- aged 50 or over on the day you start work
- working for 16 hours a week or more
You must have been on certain state benefits for at least six months. If you were on and off benefits for shorter periods, you may still get the extra tax credits if:
- the gap between each period was no more than 12 weeks
- the total time you were on certain benefits adds up to at least six months
What counts as work for tax credit claims?
Which state benefits count?
To qualify you must have been getting one of the following:
- Income Support
- Jobseeker's Allowance
- Incapacity Benefit
- Severe Disablement Allowance
- State Retirement Pension and the Pension Credit - you must have been getting both
- allowances for taking part in the Work Based Learning for Adults or Training for Work schemes
- National Insurance credits
Carer's, Bereavement and Widowed Parent's Allowance
Usually the Carer's Allowance, Bereavement Allowance or Widowed Parent's Allowance don't count. But if you were paid any of them before going on to one of the benefits that do count, you can treat the period you were getting it as part of the six months.
If your partner gets a dependent supplement for you
You can also qualify for the 50-plus tax credit if your partner has been:
- on one of the state benefits that count
- getting an extra payment for looking after you as part of that state benefit
They must have been getting the state benefit right up to the start of your new job, and for at least six months before.
Which state benefits to report when making a tax credits claim
How much will you get?
The amount of extra tax credits you may be able to get is based on how many hours you usually work. The rates for 2008-09 are:
- up to £1,235 per year, that is around £24 a week, if you work 16 to 29 hours a week
- up to £1,840 per year, that is around £35 a week, if you work 30 hours or more a week
We work out exactly how much money to pay you by looking at things like your personal circumstances and income. For example, you may be able to get extra money if you are a couple or a single parent.
You get the 50-plus extra payments for 12 months from the date you start back at work.
If you want to get an idea of how much you'll get you can call the Tax Credit Helpline on Tel 0845 300 3900 or textphone 0845 300 3909. Lines are open from 8.00 am to 8.00 pm, seven days a week.
Find out how to work out your usual working hours
If you and your partner both qualify
If you are part of a couple, you will need to make a joint claim. If you both qualify then both of you can get the 50-plus payment, but you can't combine your hours to receive the extra payment.
You may also qualify for an extra second adult payment if one or more of the following is true:
- at least one of you works for 30 hours or more a week
- one of you is responsible for a child or young person
- one of you has a disability
What counts as a couple for tax credits?
What happens if you change your working hours?
If you or your partner change your working hours, it could affect the tax credits you get. So you must tell us if:
- you start working less than 16 hours a week, if you were getting the lower rate
- you start working less than 30 hours a week, if you were getting the higher rate
If this happens, you must tell us within one month or you could be paid too much money (an overpayment) which you may have to pay back. We may also charge you a penalty of up to £300. You can let us know about a change by calling the Tax Credit Helpline on Tel 0845 300 3900 or textphone 0845 300 3909. Lines are open from 8.00 am to 8.00 pm, seven days a week.
Changes to your usual working hours and tax credits
Contact us
You can contact our Tax Credit Helpline on Tel 0845 300 3900 or textphone 0845 300 3909 (open from 8.00 am to 8.00 pm, seven days a week except Christmas Day, Boxing Day, and New Year's Day).
More useful links
How your tax credit payments are worked out
