Working Tax Credit

Key information

Working Tax Credit is money for working people who are on a low income. It does not matter whether you are working for someone else or are self-employed.

Applies to: England, Wales, Scotland and Northern Ireland

Age rules: you must be 16 or over, but in some circumstances you must be 25 or over

Type of benefit: Means tested

Taxable: No

Administered by: HM Revenue and Customs (HMRC)

N.B. If you already claim tax credits, you need to renew them before 31 July each year or your payments may stop. See the HM Revenue and Customs website for more information (link opens in a new window).

Index

You can read through this information sheet, or go directly to the sections you want to read by clicking on these links:

Who does it help?

To get Working Tax Credit, you and/or your partner must work at least a certain number of hours a week:

if you are single and responsible for a child you must work at least 16 hours and be over 16
if you are a couple and responsible for a child you must be over 16 and work at least 24 hours between you (with one working at least 16 hours) Exceptions apply, see our Tax Credit changes sheet for further details
if you qualify for the disability element of WTC, you must work at least 16 hours and be over 16
if you are 60 or over, you must work at least 16 hours a week
otherwise, you must be 25 or over and work at least 30 hours a week.

You do not need to have children to qualify but if you do have children, you could get extra money to help with childcare costs. For further information see Childcare Element of Working Tax Credit

What help does it provide?

Working Tax Credit comes in the form of cash that is usually paid into your bank or building society account. You can be paid at a post office in some cases.

Working Tax Credit is calculated for you for a year at a time but it is very important to let HM Revenue and Customs know about changes in your life that could affect the money you get.

How much does it pay?

It is very complicated to work out how much Working Tax Credit you might get. A maximum amount is made up of different parts based on your personal circumstances, for example:

A basic element
A childcare element
An element for working 30 hours or more per week
Disability elements

This amount is then compared to your annual income. Savings do not affect your claim but interest from savings is included in your income.

The Turn2us Benefits Calculator can calculate how much Working Tax Credit you may be entitled to.

How do I make a claim?

Get a claim form by phoning HM Revenue and Customs Tax Credits Helpline :

Telephone: 0345 300 3900
Textphone: 0345 300 3909

You have to renew your claim every year. If you do not renew it, your Working Tax Credit will stop.

What documents will I need?

You must give your national insurance number and proof of who you are, for example, a birth certificate or driving licence. You must also give proof of your annual income, for example, bank statements or pay slips. You must normally also give the national insurance number of your partner if they live with you.

Can it be backdated?

You may be able to get backdated Working Tax Credit for up to 31 days for new claims. It is important to get claims in quickly so you don’t lose out.

Challenging decisions

If you disagree with the decision made on your claim you can ask for it to be looked at again, and/or appeal.

The time limits are strict, you will usually be given one month to dispute a decision, so it is important to seek advice and act quickly.

Further information on Challenges and complaints

Change of circumstance

Working Tax Credit is paid on a year by year basis but it is very important to tell HM Revenue and Customs (link opens in a new window) about changes in your life during the year which could affect the money you get. You must tell them about some changes within one month.

Further help

For more help, you can phone the Tax Credit helpline on: 0345 300 3900.

Changes to Tax Credits April 2012

Changes were made to the rules around Tax Credits in April 2012. Please see Summary of Tax Credit changes for more information.

Benefits cap and Working Tax Credit from April 2013)

If you or your partner receive Working Tax Credit, you will be exempt from the benefit cap which will be introduced from April 2013.

CAB logo This information has been produced by Citizens Advice.

Updated: 20 November 2012