In this section:
- What are tax credits and who qualifies?
- Find out how work can help you qualify for tax credits
- Children and tax credits
- You have a disability - can you get extra tax credits?
- New arrivals to the UK and tax credits
- You're outside of the UK - do you qualify for 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.
On this page:
- Who can get the extra payments?
- Which state benefits count?
- How much will you get?
- If you and your partner both qualify
- What happens if you change your working hours?
- Contact the Tax Credit Office
- More useful links
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
Find out how work can help you qualify for tax credits
Which state benefits count?
To qualify you must have been getting one of the following:
- Income Support
- Employment and Support Allowance
- Jobseeker's Allowance
- Incapacity Benefit
- Severe Disablement Allowance
- State Retirement Pension and the Pension Credit - you must have been getting both
- Training allowance 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 2009-10 are:
- up to £1,300 per year, that is around £25 a week, if you work 16 to 29 hours a week
- up to £1,935 per year, that is around £37 a week, if you work 30 hours or more a week
The Tax Credit Office works 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:
- use the online questionnaire by following the link below
- 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
Tax credits questionnaire – find out how much you can get
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
When to make a joint or single claim
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 the Tax Credit Office 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 them 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.
You can let the Tax Credit Office 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 the Tax Credit Office
If you need more help you can call the Tax Credits 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
How your tax credits entitlements is worked out
Tax credits information if you're coming off benefits
Disability benefits - how do they affect tax credits payments?
