Working Tax Credit

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1. Eligibility

You can only make a claim for Working Tax Credit if you already get Child Tax Credit.

If you cannot apply for Working Tax Credit, you can apply for Universal Credit instead.

You might be able to apply for Pension Credit if you and your partner are State Pension age or over.

Hours you work

You must work a certain number of hours a week to qualify.

Circumstance Hours a week
Aged 25 to 59 At least 30 hours
Aged 60 or over At least 16 hours
Disabled At least 16 hours
Single with 1 or more children At least 16 hours
Couple with 1 or more children Usually, at least 24 hours between you (with 1 of you working at least 16 hours)

A child is someone who is under 16 (or under 20 if they’re in approved education or training).

You can still apply for Working Tax Credit if you’re on leave.

Exceptions for couples with at least one child

You might be able to claim if both of the following apply:

  • you and your partner work less than 24 hours a week between you
  • you work at least 16 hours a week

One of the following must also apply:

  • you’re disabled 
  • you’re aged 60 or above
  • your partner is incapacitated (getting certain benefits because of disability or ill health)
  • your partner is entitled to Carer’s Allowance or (in Scotland only) Carer Support Payment
  • your partner is in hospital or prison

What counts as work

Your work can be:

If you’re self-employed

Some self-employed people are not eligible for Working Tax Credit. To qualify, your self-employed work must aim to make a profit. It must also be commercial, regular and organised.

This means you may not qualify if you do not:

  • make a profit or have clear plans to make one
  • work regularly
  • keep business records, such as receipts and invoices
  • follow any regulations that apply to your work, for example having the right licence or insurance

If the average hourly profit from your self-employed work is less than the National Minimum Wage, HM Revenue and Customs (HMRC) may ask you to provide:

  • business records
  • your business plan - find out how to write a business plan
  • details of the day-to-day running of your business
  • evidence that you’ve promoted your business - such as advertisements or flyers

Your pay

The work must last at least 4 weeks (or you must expect it to last 4 weeks) and must be paid.

This can include payment in kind (for example farm produce for a farm labourer) or where you expect to be paid for the work.

Exceptions

Paid work does not include money paid:

  • for a Rent a Room Scheme (less than £7,500, or £3,750 for joint owners)
  • for work done while in prison
  • as a grant for training or studying
  • as a sports award

Your income

There’s no set limit for income because it depends on your circumstances (and those of your partner). For example, £18,000 for a couple without children or £13,100 for a single person without children - but it can be higher if you have children, pay for approved childcare or one of you is disabled.

2. What you'll get

You get a basic amount and extra (known as ‘elements’) on top of this.

How much you get depends on things like your circumstances and your income.

The basic amount is up to £2,435 a year.

Element Amount
You’re a couple applying together Up to £2,500 a year
You’re a single parent Up to £2,500 a year
You work at least 30 hours a week Up to £1,015 a year
You have a disability Up to £3,935 a year
You have a severe disability Up to £1,705 a year (usually on top of the disability payment)
You pay for approved childcare that takes place in-person (not online) Up to £122.50 (1 child) or £210 (2 or more children) a week

Your tax credits could go up or down if your income or circumstances change. Contact HM Revenue and Customs (HMRC) to find out more.

How you’re paid

Money is paid directly into your bank or building society account, every week or 4 weeks.

You must choose one account if you’re a couple.

Usually, you’re paid from the date of your claim up to the end of the tax year (5 April).

If your circumstances change

Your tax credits can go up or down if your family or work life change if you start a new job, you’re laid off work or your partner dies.

You must report these changes to HMRC.

3. How to claim

You can only make a claim for Working Tax Credit if you already get Child Tax Credit.

If you get Child Tax Credit

To claim Working Tax Credit, update your existing tax credit claim.

Update your claim by reporting a change in your circumstances.

If you do not get Child Tax Credit

You cannot apply for Working Tax Credit.

You can apply for Universal Credit instead.

You might be able to apply for Pension Credit if you and your partner are State Pension age or over.

4. Leave and gaps in your employment

You can get Working Tax Credit for periods when you do not work. For example, when you:

  • go on maternity leave
  • get sick pay
  • are in between jobs

You’re entitled to the tax credits for a certain period of time providing you qualify.

If you do not return to work at the end of the period contact HM Revenue and Customs (HMRC).

Circumstance Period you get tax credits for
You lose or leave your job For 4 weeks
You’re on maternity leave For the first 39 weeks of your leave
You’re on adoption leave For the first 39 weeks of your leave
You’re on paternity leave For the period of your ordinary paternity leave
You’re on additional paternity leave Up to the equivalent 39th week of your partner’s leave
You’re off sick For the first 28 weeks
You’re on strike For the first 10 days
You’re laid off work For 4 weeks after you’re laid off or the lay off becomes indefinite
You’re suspended from work - for example because of a complaint Usually the period of suspension

Qualifying rules

To qualify, you must:

  • have been in paid work
  • have worked the right number of hours before you go on leave or the gap happens
  • have got Statutory Sick Pay or an equivalent benefit if you were on sick leave

You’ll still qualify if you were self employed and you would have been eligible for Statutory Sick Pay or an equivalent benefit if you were not self employed.

The equivalent benefits are National Insurance credits (incapacity for work element), Employment and Support Allowance or Income Support (incapacity for work element).