Working Tax Credit is available to anyone who works at least 16 hours each week, so if you work part-time, it might be a helpful way to supplement your income. But how much money can you make? And, if you have a partner, how does their job influence your Working Tax Credit? We’ll walk you through the process.

Working Tax Credit is intended to supplement your wages if you work and have a modest income. However, it is being phased down, and most individuals must now apply for Universal Credit instead.

Working Tax Credit and Universal Credit

Working Tax Credit and Universal Credit

  • Unlike Working Tax Credits, there are no time restrictions on Universal Credit.
  • If you currently get Working Tax Credit,
  • Do you already get Working Tax Credit? Then, how and when you transition to Universal Credit is determined by whether you need to file a new claim due to a change in circumstances.
  • Changes in circumstances and tax credits
  • You must tell HMRC (the government body that issues Tax Credits) within 30 days if your circumstances have changed. Having a child, quitting your career, and working fewer than 16 hours a week are possibilities.

Assist in Saving

Assist in Saving

  • If you get Working Tax Credit, a Help to Save account may provide you with a government incentive of up to 50% on your savings.
  • It may need filing a new Universal Credit claim. HMRC will inform you of your obligations.
  • To notify the Tax Credit Helpline of any changes to your circumstances, call 0345 300 3900.

Working Tax Credit and Childcare Assistance

  • Are you receiving Working Tax Credit, working at least 16 hours each week, and paying for childcare? Then you may be qualified to claim the Working Tax Credit’s ‘childcare element.’ It will cover up to 70% of your daycare expenditures.
  • A minimum of 16 hours of joint labour each week is required to be eligible. Eligibility is open to both employees and self-employed people.

How Much Working Tax Credit for 24 Hours a Week?

With the daycare component, you may get assistance with 70% of your childcare expenditures. It is subject to specific weekly maximums.

  • Even if you pay extra for daycare, you will only get the maximum amount listed above.
  • You may not get the whole amount if you qualify for the daycare component.
  • Your salary, hours you work, and your childcare expenses determine the amount you get.
  • If you already have a claim for tax credits, contact the Tax Credit Helpline to amend it.

Keeping track of your tax credits

  • If you want to maintain receiving tax credits, you must renew your claim by July 31 each year.
  • HMRC will send you a letter notifying you of the necessary steps to renew your tax credits.
  • If your circumstances alter throughout the year, contact HMRC at 0345 300 3900. For instance, if your salary changes, your kid leaves home, or you relocate.
  • Changes in your circumstances may impact the amount of money you get or necessitate a new Universal Credit application.

Changes in income and tax credits

Change in Income and Tax Credits

The maximum amount your income may vary before you notify HMRC is £2,500. It is known as income disregard.

If your earnings increase,

  • If your income increases by £2,500 or more and you do not notify HMRC or wait until your claim is ready to be re-assessed, you may be overpaid tax credits.
  • You will be required to repay the additional funds. It will decrease future tax credits or make direct payments if your tax credits have expired.
  • To avoid a charge, you must notify HMRC within 30 days after receiving the additional funds.
  • It will be simpler to alter your tax credits, and you will be less likely to be pursued for overpayments later.

If your earnings fall,

  • If your income reduces by £2,500 or more, you may be eligible for further tax credits or be invited to apply for Universal Credit.
  • Inform HMRC of any change of circumstances as soon as possible.
  • What you may claim If you have a low income, the Working Tax Credit can help you get by. Whatever your situation, you may be able to get it, regardless of whether you’re single, married, or have children.

Work 16 hours per week in 2016/17, and you may be eligible for up to £2,010 in Working Tax Credits. You may be entitled to up to £2,970 per year if you have a disability and an extra £1,275 per year if you are severely handicapped.

Working Tax Credits may provide further assistance if your kid is enrolled in an authorised or registered daycare. It amounts to up to £122.50 a week for one child in childcare or £210 for two or more children.

The amount of Working Tax Credit you may get is determined by your income. Although the tax credit entitlement tables are available on the Government website, there is no explicit income threshold for Them.

Your Working Tax Credit payment is usually sent into your bank account every four weeks. If you’re claiming as a couple, you must specify which version you want It to go into.

What if I Work Fewer Hours?

To be eligible for the Working Tax Credit, you must work a minimum of 16 hours each week; if you only work 15 hours, you will not qualify.

It doesn’t mean you can’t make a claim, check out our blog to learn about the benefits available if you work less than 16 hours each week, such as Income Support, Child Tax Credit, and Jobseekers Allowance. And if you work more than 16 hours per week, we’ve got you covered — discover what extra advantages you may earn if you work 16 hours or more each week.


The government’s gradual implementation of the Universal Credit programme is intended to combine various current benefits into a single payment. It is designed to completely replace items like Working Tax Credits and child tax credits.

The problem is that many individuals have yet to be transferred to the new system. It is generating some misunderstanding regarding the types of Tax Credits available and how to get them. That’s all you need to know.

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