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Working Tax Credit is paid to support people in work. The scheme is administered by HM Revenue & Customs. You do not have to pay national insurance contributions to qualify.
Working tax credit is for people who are employed or self-employed (either on their own or in partnership), who:
- Usually work 16 hours or more a week
- Are paid for that work
- Expect to work for at least 4 weeks
and, who are:
- Aged 16 or over and responsible for at least one child, or
- Aged 16 or over and disabled, or
- Aged 25 or over and usually work at least 30 hours a week, or
- Aged 50 or over and have recently started work after receiving certain benefits for at least 6 months.
The amount of Working Tax Credit you receive will be based on your circumstances, for example, how many hours you normally work, and your income (or joint income, if you are part of a couple).
Elements of Working Tax Credits:
Working Tax Credit is made up of the following:
- Basic element - paid to any working person who meets the conditions.
- Lone parent element - for lone parents.
- Couples element - for couples.
- 30 hour element - for people who work at least 30 hours a week. Couples with at least one child can claim the 30 hour element if they work at least 30 hours a week between them.
- Disability element - for working people with a disability.
- Severe disability element - for people with a severe disability.
- 50 plus element - for people aged 50 or over who have just returned to work after a period on benefit.
- Child care element - for working families who spend money on approved child care for qualifying children.
£ per year (unless stated) |
Working Tax Credit |
| Basic element |
£1,890 |
| Couple and lone parent element |
£1,860 |
| 30 Hour Element |
£775 |
| Severe Disability Element |
£1,075 |
| Disabled Worker Element |
£2,530 |
| 50+ return to work payment (16-29 hours) |
£1,300 |
| 50+ return to work payment (30 hours+) |
£1,935 |
| Childcare Element (Maximum eligible for one child) |
£175 per week |
| Childcare Element (Maximum eligible for two children) |
£300 per week |
Can I get help with the costs of child care if I'm working?As part of Working Tax Credit, you may qualify for help towards the costs of child care. This is known as the child care element within Working Tax Credit.
To claim the child care element of Working Tax Credit:
- Lone parents must work 16 hours a week or more;
- Couples can claim if:
Both of you work 16 hours a week or more, or
One of you works 16 hours a week or more and the other is treated as incapacitated.
You can get help with up to 80% of your child care costs subject to maximum limits on the weekly costs you can claim for. If you pay child care for only one child the maximum cost you can claim for is £175 a week. If you pay child care for two or more children the maximum cost you can claim for is £300 a week. So the maximum child care element you can get is either:
- £140.00 a week (£175 x 80%) for one child, or
- £240 a week (£300 x 80%) for two or more children.
For example, if you spend £100 a week, the child care element would be worth up to £80 in tax credit. If you spend £40 a week, the child care element would be worth up to £32. Your child care element is added to the amount of Working Tax Credit you qualify for. The final amount you get will depend on your income (or joint income, if you are part of a couple). The guidance notes that come with the claim form will tell you what types of child care are approved.
How will Working Tax Credit be paid?HM Revenue & Customs will pay any Working Tax Credit directly to you. If you are part of a couple and you both work at least 16 hours a week, you can decide who will receive the payments of Working Tax Credit. If you are entitled to the child care element of Working Tax Credit, it will be paid directly to the person who is mainly responsible for caring for the children in the family, alongside any payments of Child Tax Credit.
If you think you might be entitled to Working Tax Credit you can go online at www.hmrc.gov.uk  to check your eligibility. If you find you are entitled to tax credits, you will be able to make your claim online immediately. For further information on Working Tax Credit, or to check your eligibility, phone the HM Revenue & Customs Helpline on 0845 300 3900, or you can textphone the Helpline on 0845 300 3909.
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