Introduction to Working Tax Credit
Working Tax Credit is a government benefit designed to support people in the UK who are working but have a low income. Its main purpose is to make work more rewarding by providing extra financial help, especially for those who might otherwise struggle to meet living costs. If you’re employed or self-employed and earn below a certain threshold, you may be able to claim Working Tax Credit to top up your earnings.
This benefit is particularly helpful for people who have children, a disability, or are aged 25 or over and working a minimum number of hours each week. For example, if you’re a single parent, you may qualify by working at least 16 hours per week. If you have a disability, the qualifying rules are slightly different and can make it easier to get support.
Working Tax Credit is part of the wider system of employment benefits in the UK, which are designed to help working people manage financially, improve work incentives, and reduce poverty. Alongside other support such as Child Tax Credit, Universal Credit, and Housing Benefit, Working Tax Credit plays a key role in making sure that work pays and that families and individuals are not left behind.
Throughout this page, you’ll find clear and practical information about who can claim Working Tax Credit, how to apply, the eligibility criteria, and what to expect from the payment process. Whether you’re new to the benefit system or just want to check your options, you’ll find straightforward guidance to help you make the most of the support available.
Who Can Claim Working Tax Credit?
Who Can Claim Working Tax Credit?
Working Tax Credit is designed to support people in the UK who are working but on a low income. To qualify, you must meet certain eligibility criteria relating to your age, hours worked, income, and personal circumstances. Understanding these rules can help you determine whether you can claim and what you might be entitled to.
Basic Eligibility Criteria
To claim Working Tax Credit, you must:
Be working a minimum number of hours per week. Generally, you must work at least 16 hours a week. The exact number depends on your age and family situation. For example:
If you’re aged 25 or over, you usually need to work at least 30 hours a week.
If you’re responsible for a child, disabled, or over 60, you may qualify if you work at least 16 hours a week.
Be aged 16 or over. Most claimants must be at least 16 and, in some cases, 25 or over unless they have children or a disability.
Be on a low income. Your total household income must fall below a certain threshold, which varies depending on your circumstances, such as the number of children you have or whether you or your partner are disabled. The precise income limits are set out in the Income Tax (Earnings and Pensions) Act 2003, Section 10 and the Working Tax Credit regulations.
Live in the UK. You must usually reside in the UK to claim.
Special Rules for Disabilities and Caring Responsibilities
If you have a disability, you may be able to claim Working Tax Credit even if you work fewer hours than usual. The rules are more flexible for those who are disabled, reflecting the additional barriers to employment. The Disability Discrimination Act 1995 provides further legal protections for disabled workers, ensuring fair treatment and access to support.
Similarly, if you are responsible for a child or a qualifying young person, you may qualify by working fewer hours. This is particularly important for single parents or those with significant caring responsibilities.
How Children or Disabilities Affect Your Claim
Having children or a disability can increase the amount of Working Tax Credit you receive and make it easier to qualify. For example:
If you have children, you may also be eligible for Child Tax Credits, which can be claimed alongside Working Tax Credit to further support your family.
If you or your partner are disabled, you may qualify for extra elements within Working Tax Credit, resulting in higher payments.
Income and Working Requirements
You must be in paid work to claim Working Tax Credit. This includes employment or self-employment. Your income is assessed jointly if you have a partner. The amount you receive reduces as your income increases, and there are strict rules about what counts as income, as detailed in the Income Tax (Earnings and Pensions) Act 2003, Section 10.
Legal Framework
The main legal rules for Working Tax Credit are set out in the Working Tax Credit regulations. These regulations explain who can claim, how much you can get, and the conditions you must meet.
Practical Example
For instance, a single parent aged 28, working 18 hours a week and earning below the income threshold, would likely qualify for Working Tax Credit. If this parent also has a disability, they may receive a higher award and could qualify even if working fewer hours.
If you think you might be eligible, it’s important to check the detailed rules and consider whether you could also claim Child Tax Credits to maximise your support. For full legal details, refer to the Working Tax Credit regulations and Income Tax (Earnings and Pensions) Act 2003, Section 10. If you have a disability, the Disability Discrimination Act 1995 outlines your rights at work and in claiming benefits.
How to Apply for Working Tax Credit
Applying for Working Tax Credit involves several steps, and it’s important to follow the process carefully to avoid delays or missing out on payments. Here’s what you need to know about how to apply, what information you’ll need, and what to do if your circumstances change.
Step-by-Step Application Process
Check Your Eligibility
Before you start, make sure you’re eligible to claim Working Tax Credit. Most new claims are now handled through Universal Credit, but some people can still apply for Working Tax Credit – such as those already receiving Child Tax Credit or in specific circumstances. If you’re unsure, check the latest eligibility rules on the HM Revenue and Customs (HMRC) website.Get the Application Form
You cannot apply for Working Tax Credit online. Instead, you’ll need to request a claim form (TC600) from HMRC. You can do this by calling the Tax Credits helpline or, in some cases, by post. Details on how to request the form are available through the Working Tax Credit application process guide from Citizens Advice.Complete the Form
Fill in the TC600 form carefully. You’ll need to provide personal details, information about your income, your working hours, and any disabilities if relevant. If you’re claiming as a couple, both partners must provide their details.Submit Your Application
Once completed, send your form to HMRC by post. The address is provided on the form and on the HMRC website. Keep a copy for your records.Wait for a Response
HMRC will process your application and may contact you for more information. Once your claim is decided, you’ll receive an award notice explaining your entitlement and payment details.
Where and How to Apply
By Post:
The main way to apply is by post using the TC600 form. Request the form by calling HMRC’s Tax Credits helpline.By Phone:
If you need help with your application, you can contact the Tax Credits helpline for assistance.Online:
At present, new Working Tax Credit claims cannot be made online. However, you can find detailed information and guidance on the HM Revenue and Customs (HMRC) website.
For a step-by-step overview and practical advice, see the Working Tax Credit application process guide from Citizens Advice.
Information and Documents You’ll Need
To complete your application, you’ll need:
National Insurance number (for you and your partner, if applicable)
Details of your income for the previous tax year (such as P60, P45, or payslips)
Information about your working hours and employer
Details of any benefits you receive
Bank account information for payments
Evidence of childcare costs, if you’re claiming for help with childcare
Having these documents ready will help ensure your application is processed quickly.
What to Do If Your Circumstances Change
After you’ve applied, it’s essential to keep HMRC up to date with any changes in your circumstances. This includes changes in your income, working hours, family situation (such as moving in with a partner or having a child), or childcare costs. Failing to report changes promptly can lead to overpayments or underpayments, which may need to be repaid.
Contact HMRC as soon as possible if anything changes. You can find contact details and more information on the HM Revenue and Customs (HMRC) website.
Apply as Soon as Possible
It’s important to apply for Working Tax Credit as soon as you think you’re eligible. Payments can only be backdated for up to 31 days from the date HMRC receives your claim, so delaying your application could mean missing out on money you’re entitled to.
For further guidance on making a claim, including detailed instructions and what to expect during the process, visit the Working Tax Credit application process page from Citizens Advice.
If you need more information or support, the HM Revenue and Customs (HMRC) website is the official source for all tax credit queries and updates.
Eligibility Rules and Conditions
Eligibility Rules and Conditions
To qualify for Working Tax Credit, you must meet specific rules set out by UK law. These rules cover your age, working hours, income, and household circumstances. Understanding these conditions is essential, as even small changes can affect your entitlement.
Income Thresholds
Your eligibility for Working Tax Credit depends largely on your household income. The government sets annual income thresholds, and your combined income – whether you’re single or part of a couple – must fall below these limits to qualify. Both your earnings and those of your partner (if you have one) are considered. The exact thresholds can change each tax year, so it’s important to check the most up-to-date figures.
For a full explanation of how income is assessed for tax credits, you can refer to Income Tax (Earnings and Pensions) Act 2003, Section 10, which outlines the legal framework for tax credit eligibility.
Working Hours
A key condition for Working Tax Credit is the number of hours you work each week. The minimum required hours depend on your age and circumstances:
Aged 25 or over: You must work at least 30 hours per week.
Aged 16 or over: You may qualify if you work at least 16 hours per week and you:
Have a disability that puts you at a disadvantage in getting work,
Are responsible for a child or young person,
Are a single parent.
Couples with children can usually qualify if they jointly work at least 24 hours a week (with one partner working at least 16 hours).
Household Circumstances
Your household situation – such as whether you live with a partner, have children, or care for someone with a disability – affects your eligibility and the amount you can receive. For example, if your partner moves in or out, or if you have a new child, your entitlement could change.
It’s crucial to keep HM Revenue and Customs (HMRC) informed about changes in your household circumstances. Failing to report changes promptly can lead to overpayments, which you may have to repay, or even penalties.
Changes in Income or Work Hours
Your entitlement to Working Tax Credit can change if your income goes up or down, or if your working hours increase or decrease. For example, if you start working fewer hours than the minimum required, you may no longer qualify. Similarly, a significant increase in income could reduce the amount you receive or make you ineligible.
If your circumstances change, always report them as soon as possible to avoid problems. Citizens Advice offers practical guidance on how changes can affect your tax credits, including which changes must be reported and how to do so.
Special Considerations for Disabilities and Carers
If you have a disability, or if you care for someone with a disability, you may qualify for extra support through Working Tax Credit. You could be eligible for a disability element if you work at least 16 hours a week and receive a qualifying disability benefit. This can increase the amount of tax credit you receive.
If your health condition means you are unable to work, or if you need more tailored support, you may also want to explore Employment Support Allowance (ESA), which is designed for people with disabilities or health conditions.
Reporting Changes Promptly
It’s your responsibility to tell HMRC about any changes to your income, working hours, or household circumstances. Prompt reporting helps ensure you receive the correct amount and prevents overpayments or penalties. For detailed advice on what changes to report and how to do it, see the guidance on household circumstances.
By staying informed and keeping your details up to date, you can make sure you get the support you’re entitled to – and avoid unexpected bills in the future.
Payments and Amounts
Payments and Amounts
Understanding how much you can receive from Working Tax Credit is essential for managing your finances. The amount you get depends on several factors, including your income, hours worked, and personal circumstances. Below, we explain how payments are calculated, what affects them, how and when you’ll be paid, and what to do if you think your payments are wrong.
How Working Tax Credit Payments Are Calculated
Working Tax Credit payments are made up of different elements, each designed to support specific needs. The main part is called the basic element, and extra amounts may be added if you have a disability, are a single parent, or work a certain number of hours. The total amount you’re entitled to is then reduced based on your household income – generally, the higher your income, the lower your tax credit.
For a detailed breakdown of how payments are worked out, including current rates and eligibility for extra elements, visit the Working Tax Credit payment calculation page on GOV.UK.
Factors That Influence Payment Amounts
Several key factors affect how much Working Tax Credit you can receive:
Your income: Payments reduce as your household income increases. Both your earnings and those of a partner (if you have one) are considered.
Hours worked: You must work a minimum number of hours to qualify. Generally, adults aged 25 or over must work at least 30 hours a week, but the threshold is lower for people with children or disabilities.
Family circumstances: If you’re responsible for children, disabled, or over a certain age, you may qualify for extra elements. Your entitlement may also be affected if your circumstances change during the year.
If you also claim Child Tax Credits, your payments for both are usually combined into a single payment. However, each credit is calculated separately based on your circumstances.
How and When Payments Are Made
Working Tax Credit is usually paid directly into your bank, building society, or Post Office account. Payments are made either weekly or every four weeks, depending on your preference when you applied. The payment schedule and amounts are set out in your award notice, which you should keep for your records.
Interaction with Other Benefits or Tax Credits
Working Tax Credit can be paid alongside certain other benefits, but it may affect how much you receive from them. For example, receiving Working Tax Credit could change the amount of Housing Benefit or Council Tax Support you’re entitled to. If you claim both Working Tax Credit and Child Tax Credits, the payments are combined, but each is still based on separate eligibility rules.
The legal framework for these interactions is set out in the Tax Credits Act 2002, which governs how tax credits are awarded and administered.
Checking Your Payment Amounts
You will receive an award notice detailing how your payments have been calculated. It’s important to check this carefully to make sure all your details are correct. If your income or circumstances change, you must report this as soon as possible, as it can affect your entitlement.
If you think your payment is incorrect, contact HM Revenue and Customs (HMRC) straight away. Common reasons for incorrect payments include changes in income, working hours, or family circumstances that haven’t been updated.
For more guidance on how your payments are calculated and what to do if something seems wrong, refer to the Working Tax Credit payment calculation page.
By understanding how Working Tax Credit payments are calculated and what affects them, you can ensure you receive the correct support. Always keep your details up to date and check your award notices carefully. For more on how Working Tax Credit works alongside Child Tax Credits, see our dedicated guide. For legal details, the Tax Credits Act 2002 provides the full legislative background.
Working Tax Credit and Other Benefits
When you receive Working Tax Credit, it’s important to understand how it fits alongside other benefits, as this can affect the amount you receive and what you’re eligible for. Here’s what you need to know about how Working Tax Credit interacts with Universal Credit, Jobseeker’s Allowance, Housing Benefit, and other forms of support.
Working Tax Credit and Universal Credit
Universal Credit is gradually replacing Working Tax Credit and several other benefits. In most cases, you cannot claim both at the same time. If you’re already getting Working Tax Credit, you’ll usually continue to receive it until you’re moved over to Universal Credit by the Department for Work and Pensions (DWP) or your circumstances change (such as a new claim or a significant change in your household).
If you apply for Universal Credit, your Working Tax Credit will stop, and you cannot go back to it. It’s crucial to check how this change could impact your finances before making a new claim. For more information on this transition and what it means for your income, see how employment affects Universal Credit.
Working Tax Credit and Jobseeker’s Allowance
Working Tax Credit is designed for people in paid work, while Jobseeker’s Allowance (JSA) supports those who are unemployed and actively seeking work. You generally cannot claim both at the same time, as JSA requires you to work less than 16 hours per week, while Working Tax Credit requires you to work at least a certain number of hours. If your work situation changes, it’s important to update your benefit claims promptly to avoid overpayments or gaps in support.
Working Tax Credit and Housing Benefit
Many people who qualify for Working Tax Credit are also eligible for help with their rent through Housing Benefit. The amount of Housing Benefit you receive may be affected by your Working Tax Credit, as both are means-tested. If your income from work or tax credits changes, you should inform your local council so your Housing Benefit can be adjusted accordingly. This helps prevent overpayments, which you may have to repay later.
Managing Multiple Benefits and Avoiding Overpayments
If you receive more than one type of benefit, it’s essential to keep all relevant agencies updated about any changes in your work hours, income, or family circumstances. Overpayments can happen if you don’t report changes promptly, and you may be asked to pay back any extra money you weren’t entitled to. Always check with HMRC or your local council if you’re unsure about how a change might affect your benefits.
Additional Support: Help with Transport Costs
If you have a disability or mobility issue and receive Working Tax Credit, you may be eligible for extra support to help with travel expenses. For example, you could get help with transport costs if you need assistance getting to work or medical appointments. This can make a real difference in managing your day-to-day expenses, so it’s worth checking what you might qualify for.
Maximising Your Entitlements
Understanding how different benefits interact is key to making sure you get all the support you’re entitled to. Take time to review your situation and seek advice if you’re unsure. By staying informed and keeping your details up to date, you can avoid overpayments and make the most of the financial help available to you.
Additional Resources and Support
If you’re looking for more information or need extra support with Working Tax Credit, there are several trusted resources and organisations that can help.
For the most up-to-date and detailed guidance on eligibility, how to claim, and how payments are calculated, visit the official GOV.UK page. This government resource covers everything from the required working hours to what happens if your circumstances change, as well as how tax credits interact with other benefits.
If you have questions about your entitlement, need help with an application, or are experiencing problems with your payments, organisations like Citizens Advice offer free, confidential advice. They can support you in understanding your rights, resolving issues, and making sure you’re getting all the help you’re entitled to.
Local advice centres and charities can also provide one-to-one support, especially if you’re dealing with complex circumstances or changes in your employment status. Many of these organisations offer online tools and calculators to help you estimate your entitlement and check how changes in your income or working hours might affect your benefits.
It’s important to stay informed about changes to the benefits system, such as the ongoing rollout of Universal Credit, which is gradually replacing Working Tax Credit for many people. Regularly checking official sources ensures you don’t miss updates that could affect your payments or eligibility.
If you want to understand how Working Tax Credit fits within the wider range of financial support available to workers, you may also find it helpful to explore employment benefits. This can give you a fuller picture of the support you might be able to claim alongside or instead of Working Tax Credit.
For further reading on related topics, including Child Tax Credit and other forms of help for people on a low income, the resources above can guide you through your options and next steps.
Related Benefits and Topics
Related Benefits and Topics
Understanding how Working Tax Credit fits into the wider system of financial support can help you make the most of the benefits available to you. There are several related benefits that may be relevant, depending on your circumstances. Here’s an overview of the main alternatives and how they connect to Working Tax Credit:
Child Tax Credits
If you have children, you may also be eligible for Child Tax Credits. While Working Tax Credit is designed to support people in work with a low income, Child Tax Credits provide additional help for families with children, regardless of whether you are working. Many people claim both benefits together, as they are assessed jointly to determine your overall entitlement.
The rules for Child Tax Credits are set out in the Tax Credits Act 2002 and subsequent amendments, such as The Child Tax Credit (Amendment) Regulations 2003](https://www.legislation.gov.uk/uksi/2003/738/made), which detail eligibility and how the credits are calculated. If you want more information on financial support for families, visit our [Child Tax Credits page.
Employment Support Allowance (ESA)
If you are unable to work due to illness or disability, Employment Support Allowance (ESA) may be more appropriate than Working Tax Credit. ESA provides financial support if your health condition or disability affects your ability to work, and it has its own eligibility rules and application process. You cannot usually claim both ESA and Working Tax Credit at the same time, so it’s important to check which benefit best matches your situation. For full details about support for people unable to work due to health issues, see our Employment Support Allowance (ESA) guide.
Jobseeker’s Allowance (JSA)
Jobseeker’s Allowance (JSA) is designed for people who are out of work and actively looking for employment. You cannot claim JSA and Working Tax Credit at the same time, as JSA is for those not currently working, while Working Tax Credit is for people in paid employment. The eligibility and rules for JSA are set out in The Jobseeker’s Allowance Regulations 2013](https://www.legislation.gov.uk/uksi/2013/378), which outline who can claim and what is required to receive this benefit. To learn more about financial support while you are looking for work, visit our [Jobseeker’s Allowance (JSA) page.
Each benefit has its own eligibility criteria and is designed to support people in different situations. If your circumstances change – such as losing your job, developing a health condition, or having a child – it’s important to review which benefits you might qualify for. For more detailed information, follow the links above to explore each benefit in depth.
