Working Tax Credit

If you are working and you live in an area which does not yet have the Full Digital Universal Credit Service, you may be able to claim Working Tax Credit. You can quickly check if you could be entitled by using this link and entering your income.

Please note that from 1st April 2017, even if you live in a Full Digital Universal Credit area you will be able to make a new claim for Working Tax Credit if you have three or more dependant children.

By 2022 Working Tax Credit and Child Tax Credit will no longer exist; they are being replaced by Universal Credit.

Working Tax Credit

NOTE: No new claim for Tax Credits can be made by claimants living in the Full or Digital Service areas - these claimants need to make a claim for Universal Credit instead. You can see if you're eligible for Working Tax Credit by visiting the Citizen's Advice checker.

This does not apply to new claims from families with 3 or more children who, until November 2018, will still be able to claim.

What Help Is Available?

Estuary Housing Association has a welfare benefits team who provide advice and support to help you navigate your way through the benefit system and assist people on low incomes.

During April 2016 – March 2017 we helped our residents gain an extra £768,842.00 that they may not have received otherwise. We can help you by providing advice and assistance specific to your circumstances about applying for welfare benefits, or direct you to other agencies that may be able to assist.

Helping You Manage Your Income

We can help you to:

  • identify unclaimed benefits
  • assist you in claiming
  • when appropriate we will represent you at appeal tribunals
  • provide support and information about the changes to the Benefit system including  PIP, Benefit Cap and Universal Credit
  • provide information on managing your income.

We are here to help. We work closely with the Income Team.

Who Can Claim Working Tax Credit?

Lone Parents

Lone parents aged 16 or over with at least one dependant child, working 16 hours or more a week.

Couples with children: 

Couples aged 16 or over with at least one dependant child, and 

  • One of the couple is working 24 hours or more a week, or 
  • Both are working a total of 24 hours or more a week as long as one of them is working 16 hours or more a week, or
  • One of the couple is working 16 hours or more a week, and the other is incapacitated*, in hospital or in prison, or
  • At least one of the couple is working 16 hours or more a week, and either of them is entitled to Carers Allowance.

Disabled Worker:

  • Couples aged 16 or over, where one (or both) is classed as a disabled worker and that person works 16 hours or more a week, or 
  • Single people aged 16 or over who are classed as a disabled worker, who work 16 hours or more a week. 

To check whether a person counts as a disabled worker use this factsheet from HMRC.

Age 60 plus: 

  • Couples, where one is aged 60 or over working 16 hours or more a week, or 
  • Single person aged 60 or over, working 16 hours or more a week.

Others:

  • Single people aged 25 or over, who are working 30 hours or more a week, or 
  • Couples where at least one is aged 25 or over and works 30 hours or more a week.

Note that Working Tax Credit is a means tested benefit. This means that you don't automatically qualify for a payment. Other factors, including your income are taken into account. Use this calculator to get an idea as to whether or not you may qualify. 

Who Can Qualify For Childcare Costs?

  • Lone parents must work 16 hours or more a week to claim help with childcare costs.
  • Couples can only get help with childcare costs if the claimant and their partner both work 16 hours or more a week.

But only one partner in a couple has to work 16 hours or more if the other is:

  • incapacitated*
  • in hospital
  • in prison - serving a custodial sentence or remanded in custody awaiting trial or sentence
  • entitled to Carer's Allowance - even if they don't get any payments because they receive other benefits instead. 

Incapacitated - getting Contributory Employment and Support Allowance for 26 weeks or more (or on a credits only claim); or Disability Living Allowance or Personal Independence Payment or Armed Forces Independence Payment or Attendance Allowance or Severe Disablement Allowance; or, Housing Benefit or Council Tax Support with a disability premium.

Self Employed?

If you are self-employed then you are expected to be 'organised, developed and regular.' This means that you will be expected to be working for either 16, 24 or 30 hours per week, earning the appropriate minimum wage and you must provide evidence of this. If you are found not to be working the necessary hours or earning less than the appropriate minimum wage you will not be entitled to WTC as a self employed person.

This has applied to new claimants since April 2015 as part of an update to the Working Tax Credit Regulations, and HMRC are to review existing self-employed claimants of WTC. For existing claimants found not to be in self-employment, their WTC award would end and there could even be an overpayment.

Claim forms are available from HMRC, or call the helpline on 0345 300 3900

A very useful and extensive guide to Tax Credits, including links to leaflets, can be found on www.revenuebenefits.org.uk

Working and Child Tax Credit are coming to an end

By 2022 Working Tax Credit and Child Tax Credit will no longer exist. They are being replaced by Universal Credit.