Benefits you're entitled to: Working tax credit

Published by Edmund Greaves on 21 January 2015.
Last updated on 27 July 2017

Working tax credit is a benefit you may be entitled to if you are in work.

However, many families do not get the help that they need, either because they do not understand the system, or because they think that they are not entitled to anything.

Here's the Moneywise guide to claiming working tax credit.

What is it?

Working tax credit tops up the earnings of those on low incomes, whether employed or self-employed. You don't have to have children to qualify, but if you do you may also be eligible for the childcare element of working tax credit, which gives money for registered childcare to allow you to work. See our guide to {child tax credit} LINK. If you are disabled you may also receive more working tax credits.

How much might I get?

Eligibility for working tax credit depends on how many hours you work. If you have no dependent children and are under 60 you must work at least 30 hours a week to receive the credit. Single parents and those over 60 must work at least 16 hours a week. Couples with children must work at least 24 hours a week between them, although there are some exceptions to this.

If you are eligible, the amount you receive will depend on your income, and is made-up of various elements depending on your eligibility. The maximum basic element of working tax credit is £1,960 a year; extra elements may then be paid on top of this. These elements are as follows:

  • You’re a couple applying together - up to £2,010 a year
  • You’re a single parent - up to £2,010 a year
  • You work at least 30 hours a week - up to £810 a year
  • You have a disability - up to £3,000 a year
  • You have a severe disability - up to £1,290 a year (usually on top of the disability payment)
  •  You pay for ‘approved’ (meaning childcare is provided by a registered scheme or person) childcare - up to £122.50 (one child) or £210 (two or more children) a week

Use the government’s tax credit calculator to work out what you’re eligible for. The tax credits government helpline is available on 0345 300 3900.

The money is paid directly into your bank or building society account every week or ever four weeks. However, if your circumstances change, it’s important to report these as they could affect how much you receive.  

How do I claim?

You can order a tax credit claims form online via Gov.uk or by calling the tax credit office run by HMRC on 0345 300 3900.

How can I work out what other benefits I'm eligible for?

The charity Turn2us.org.uk also has an online calculator that allows you to input all your circumstances and it works out your entitlement to benefits. The charity also has a free helpline on 0808 802 2000.

 

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I am 50 years old and looking

I am 50 years old and looking for work I'm getting jst just now but want 20 hours of work if I do am I still untitled to jsa

Hi there, if you were to

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I recently had to give up my

I recently had to give up my job as a nurse due to ill-health (fibromyalgia/chronic pain/stress) and as I have had a massive drop in income I would like to try and retrain in some administration/clerical role and work part time.
I currently receive ESA initial rate (awaiting further review) and a small NHS pension £406/mth, the rules of my pension state I cannot earn more than the lower earnings limit without forfeiting part of my pension. I have yet to clarify with pensions service if ESA is considered as earnings.
My question is if I could work 2days (15hrs) would I be entitled to ESA for the days I cannot work?

If i work only 20 hours what

If i work only 20 hours what benefits i can claim, as i know i cant claim working tax credit because of my 20 hours job. What benefits can i claim then?

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Can Liz intitle for Universal credit?

I HAVE A NEW JOB WORKING 20

I HAVE A NEW JOB WORKING 20 HOURS A WEEK AND ENQUIRING IF I WILL GET WORKING TAX CREDITS. I AM WAITING TO SEE IF I WILL BE GETTING PIP MONEY. WAITING FOR THE TRIBUNAL. WHAT WILL HAPPEN.

Hi my name is Monica I'm

Hi my name is Monica I'm single parents,I'm workin 35 hours a week and I get workings tax credit,if I will be work 40 hours a week I will get working tax credit ?

Hi I'm a single woman over 60

Hi I'm a single woman over 60 working 20 hrs a week on minimum wage am I entitled to working tax credit?