To be eligible for tax credits, you must file a claim. There can be no entitlement without a suit.

Tax credits are progressively being phased out, favouring Universal Credit, and HMRC has said that new tax credit applications are no longer feasible. The sole exception is for those who have been given refugee status.

Implementation of Universal Credit

UC is now accessible across the United Kingdom. Consequently, HMRC states that new applications for tax credits are no longer allowed. People will instead have to apply for universal credit or pension credit.

The sole exemption is for persons who have been given refugee status. It is not usually feasible to claim both UC and tax credits simultaneously.

Existing tax credit claimants may renew their claims, add new aspects to existing claims, add working tax credit to a child tax credit claim and vice versa since they are not considered brand new suits. See our UC website for further information on when UC may impact current tax credits.

Impact Current Tax Credit

If a current tax credit claimant applies for universal credit, their tax credit award will be terminated, even if they are not eligible for UC.

People who received a severe disability premium in addition to certain social security payments were unable to claim UC as of January 16, 2019, but were eligible to file new claims for tax credits (and other legacy benefits). However, this ‘SDP Gateway’ was repealed on January 27 2021, allowing anyone to file UC claims.

Similarly, until March 31, 2022, ‘border employees’ might file new tax credit claims. As of that date, the employees could no longer claim UC.

People who are ‘in Great Britain’ (under Section 4(1)(c) of the Welfare Reform Act 2012) or ‘in Northern Ireland’ (under Article 9(1)(c) of the Welfare Reform (Northern Ireland) Order 2015) but do not live in either GB or NI are considered frontier workers.

Crown employees or members of the HM Forces serving abroad (as specified by the UC Regulations 2013) are not frontier workers.

Note: According to HMRC, no new tax credit claims may make unless the individual is currently claiming WTC or CTC and wishes to claim the additional tax credits or renew their share. However, the law is unclear on this issue, and one interpretation of the existing law is that certain persons may be entitled to file new tax credit claims.

Under the tax credit system, a claim for tax credits can be made from a past date. It can happen when the claimant is waiting to decide on a qualifying disability benefit needed to who is eligible for tax credits or when asylum seekers are given refugee status. Certain persons who have been granted refugee status may file a new application for tax credits.

How to Apply for Working Tax Credit in UK?

Working and Child Tax Credits

Working and Child Tax Credits

These taxes are no longer available for most new claims; they have been replaced by Universal Credit for new shares.

Previously, you could apply for two tax credits: the Child Tax Credit and the Working Tax Credit.

To be eligible for tax credits, you must be 16 or older and usually reside in the United Kingdom.

Couples must apply for joint tax credits. You cannot use it as a single individual if you are part of a couple.

How to qualify?

To qualify for the Working Tax Credit, a person must work 16 hours or more each week and plan to work for at least four weeks, be 16 or older and have at least one kid, be 16 or more aged and handicapped, or be over 60 and not have any children.

New restrictions enacted in April 2012 require most couples with children to work more than 24 hours per week to qualify for Working Tax Credits.

Working Tax Credit is given to those who work 16 hours or more each week. Couples, if both of you work 16 hours or more each week, you must decide who will get it. Working Tax Credit should not be obtained if you are not working for at least 16 hours at your claim.

And it should not be maintained if you stop working for less than 16 hours after receiving it despite new regulations enacted in January 2008 allowing it to be paid for four weeks after you stop working.

Because of the additional constraints imposed by Covid-19, it may continue throughout the vacation period as long as you are still employed or self-employed. Because of Covid-19, other restrictions may continue when the furlough programme is in effect as long as you are still working or self-employed.

Child Tax Credit

Child Tax Credit

Child Tax Credit eligibility requires that you be the primary caregiver for at least one child or young person. It doesn’t matter whether the primary caregiver works or not; they are eligible for the Child Tax Credit. For single parents, you will be compensated.

Working Tax Credit may entitle you to assist with childcare expenses. Suppose you get the childcare part of the Working Tax Credit. In that case, it is always given directly to the person who is primarily responsible for caring for the kid or children and Child Tax Credit payments.

Your yearly income from April will determine the number of tax credits you get to April of the previous year.

You may earn £2,500 more than this previous year’s income without affecting your ongoing award, as long as this last year’s income was NOT an estimate submitted by you.

However, anything exceeding £2,500 will diminish your benefits next year. It will also be noted when the Inland Revenue recalculates your next reward in April, which may result in an overpayment for the prior year.


If you and your partner are of State Pension age or older, you may be eligible for Pension Credit. This credit can only be claimed in conjunction with the Child Tax Credit. If you cannot apply for the Working Tax Credit, you may instead apply for Universal Credit.

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