Working Tax Credit

Working Tax Credit (WTC) has been replaced by Universal Credit for most people.

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.

Am I eligible for Working Tax Credit?

You must work a certain number of hours a week to qualify. You can qualify from age 16 if you fall into one of the last 3 categories; if not in one of the 16 hour categories you must be aged 25 and over and working at least 30 hours.

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). Child Tax Credit when your child reaches 16.

Use the tax credits calculator on the GOV.UK website to check if you work the right number of hours.

You can still apply for Working Tax Credit if you are on maternity leave, sick pay or are in between jobs.

Exceptions for couples with at least one child

You can claim if you work less than 24 hours a week between you, and one of the following applies:

  • you work at least 16 hours a week and you're disabled or aged 60 or above
  • you work at least 16 hours a week and your partner is incapacitated (getting certain benefits because of disability or ill health), is entitled to Carer's Allowance, or is in hospital or prison

What counts as work

Your work can be:

  • for someone else, as a worker or employee
  • as someone who's self-employed
  • a mixture of the two

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 may ask you to provide:

  • business records
  • your 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
  • as a volunteer if only paid expenses

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.

How much Working Tax Credit will I get?

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

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

Element Yearly amount
You're a couple applying together Up to £2,500
You're a single parent Up to £2,500
You work at least 30 hours a week Up to £1,015
You have a disability Up to £3,935
You have a severe disability Up to £1,705
(usually on top of the disability payment)
You pay for approved childcare Up to £122.50 (1 child) or £210.00 (2 or more children) a week

Use the tax credits calculator on the GOV.UK website to work out how much you could get. Payments are made either weekly or 4 weekly into your nominated bank or building society account.

How do I claim?

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

If you get Child Tax Credit

Update your existing tax credit claim to claim Working Tax Credit.

If you do not get Child Tax Credit

You cannot apply for Working Tax Credit.

You can apply for Universal Credit instead.