Working Tax Credit
What is it?
Working Tax Credit is a means-tested allowance for people who are in paid work and on a low income. It is administered by HM Revenues and Customs.
Do I qualify?
You can only get Working Tax Credit if you or your partner work at least 16 hours a week and you or your partner are at least 16 years old. However, not everyone who works 16 hours a week or more can qualify. There are four main ways of qualifying for Working Tax Credit.
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If you are responsible for a child or young person and working at least 16 hours a week
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If you are disabled, and you get, or were recently getting a qualifying benefit, and work at least 16 hours a week. The qualifying benefits include Incapacity Benefit, Disability Living Allowance, Attendance Allowance,Industrial Injuries Disablement Benefit, Statutory Sick Pay, a War Pension with Constant Attendance Allowance, Occupational Sick Pay or Income Support or National Insurance credits awarded because you have been unable to work. There are rules about how long you have to have been getting some of these benefits before you claim Working Tax Credit. Some of these benefits stop once you are working, and some carry on
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If you are 50 or over, you work 16 hours or more a week, you started work within the last three months and you were getting certain benefits for at least six months before you started work. If you were previously getting Income Support, Jobseeker's Allowance, Incapacity Benefit or Severe Disablement Allowance, state Retirement Pension paid with Pension Credit, or certain training allowances, you may be able to get Working Tax Credit when you start work. You must usually have been getting these benefits for at least six months. If you were not entitled to benefits, but you were getting national insurance credits, you may also be able to get Working Tax Credit
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If you are 25 or over and you work 30 hours or more a week.
If you are responsible for a child you may also be able to claim Child Tax Credit.
Tax Credits are usually calculated on an annual basis, and on your income from the previous financial year (this runs from April to March).
For an easy way to find out which benefits might apply to you and your circumstances go to What can I claim?
The Benefits Maximisation Service can provide personal advice on what you may be entitled to and help you make a claim. For more information go to Benefits Maximisation Service.
How much is it?
Working Tax Credit is made up of a number of elements depending on your circumstances, and also depends on your household income. HM Revenues and Customs will use your income from the previous tax year to calculate your award, but not all your income will be taken into account (for example, maintenance and child support, most Statutory Maternity, Paternity or Adoption Pay and all Maternity Allowance paid to you is ignored). It is therefore not possible to say how much any individual person might get.
Working Tax Credit is assessed on an annual basis.
How do I apply?
To apply for Working Tax Credit, contact the tax credit help line for an application pack. The application form for your first claim is Form TC600. The help line number is 0845 300 3900 (text phone 0845 300 3909) and calls cost the same as a local telephone call. The application pack is also available from HM Revenues and Customs centres, local benefit offices and Jobcentre Plus offices.
The application form requires a lot of information, including your income for the previous tax year. If you have problems filling in the form, you can consult the notes that come with it, call the help line, or contact our Benefits Maximisation Team.
You may be able to get some Working Tax Credit for a period before you apply, if you met the conditions and could have claimed earlier. Getting tax credit for a period before you apply is called 'backdating'. You do not have to give any reasons why you did not claim earlier. When you apply ask for backdated tax credit on your application form. You can only get Working Tax Credit backdated for a maximum of three months before the date you apply.
If you want any help with claiming backdated Working Tax Credit, you should contact our Benefits Maximisation Service.
What if I am not satisfiedwith the decision?
Generally, if you think the decision is wrong you should make a written appeal within 30 days from the date on the decision.
It is very important that you reply within 30 days, as you may not be able to challenge the decision otherwise.
You can appeal using the Inland Revenue leaflet WCT/AP How to Appeal Against a Tax Credit Decision or Award.
Our Benefit Maximisation Service can help you with appeals.
What if my circumstances change?
If your circumstances change during the year your entitlement to working tax credit can change. There are some changes that you must inform HM Revenues and Customs of:
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A change to your status as a single person or couple
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You move abroad
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Your child care costs end or reduce by £10 a week or more (where you are also claiming Child Tax Credit)
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Your work hours change so that you no longer meet the 16 or 30 hour a week qualifying rule
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You stop being responsible for a child or qualifying young person (where you are also claiming Child Tax Credit).
If your income goes up or down during the year (excluding the circumstances listed above), you do not have to inform HM Revenues and Customs. HM Revenues and Customs will simply calculate your new award based on your annual income at the end of the year. If you have been overpaid or underpaid your award will be adjusted to pay you back, or reclaim the overpayment. However, if your income has increased by under £25,000 per year, you will not be treated as having been overpaid (although your new award will be based on your new income).
If your income goes down during the year it may be beneficial to inform HM Revenues and Customs immediately, and ask for your award to be revised. This would mean you could get additional tax credits. However, there are some circumstances, particularly if you are claiming Housing Benefit or Council Tax Benefit, where it could be beneficial to you not to report the change at the time. The Benefits Maximisation Service can provide personal advice on this situation. For more information go to Benefits Maximisation Service.
Disclaimer
Although every effort is made to ensure the information on these pages is accurate and up to date, it should not be treated as a complete and authoritative statement of the law.