In this section:
What counts as work for tax credit claims?
Working Tax Credit is based on the hours you work and get paid for, either as an employee or a self-employed person. Unpaid work doesn't count as work when claiming tax credits.
What counts as paid work?
If you're an employee, paid work means the work you do for your employer in return for payment in cash such as wages, or payment in kind.
If the only payment made is in kind, for example groceries for a person who works as a shop assistant, or free accommodation and farm produce for a farm labourer, it counts as paid work for tax credit purposes.
If you're self-employed, paid work is work you do for payment or profit.
To claim tax credits, you should expect your paid work to continue for at least four weeks.
What doesn't count as paid work?
- If you are a student, any work done when studying for a degree or other qualification does not count as work for tax credit purposes. Any grant or loan that you receive is for maintenance and is not paid in return for work done on the course.
- If you are a student nurse, the NHS Bursary and other grants or loans you receive are not payments for work done on the course.
- Working for charities or voluntary organisations where you get no pay or only expenses.
- Working for a local authority, health authority charitable or voluntary organisation where the only payment you receive is covered by the Rent a Room scheme.
- Being on strike for more than ten days in a row.
- Working in a scheme where you get a training allowance, rather than pay unless the allowance is taxable.
- Taking part in the Intensive Activity Period or Preparation for Employment Programme unless the payment received is taxable.
- Taking part in an activity where a sports award has been made and no other payments have been made.
- Taking part in an Employment Zone programme where no other payments have been made.
- Carrying out community service or serving a custodial sentence.
When to claim
You need to be in paid work at the time you make your claim, or starting paid work within seven days of making your claim. You will only get tax credits if you actually start this paid work.
Temporary paid leave
You may still get Working Tax Credit when you're on sick leave or on maternity, paternity or adoption leave, as long as you usually worked a certain number of hours immediately before you went on leave.
Tax credits when you can't work due to illness
Maternity, paternity and adoption leave and tax credits
Temporary gaps in work when claiming tax credits
What happens if you leave your paid work?
If you leave work or you start to work less than the minimum of hours a week, you will no longer be able to claim Working Tax Credit.
If you leave your job and receive pay instead of notice, you won't be counted as being in work for tax credits purposes during that period. But if you get another job during that time, you may still qualify for tax credits based on your new job.
Make sure you tell us straight away if your work circumstances change, for example you change the number of hours you work, or you are temporarily out of work. This is so that we can make sure you don't get too much or too little in the way of tax credits.
Find out which changes in circumstances to tell us about and when
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
Working out usual working hours for your tax credits claim
How your tax credit payments are worked out
Email us about an employer not paying the National Minimum Wage
