Working Tax Credit

Working Tax Credit is an extra payment to people who are employed but nevertheless on a low income. The idea of Working Tax Credits is that it pays to be in work, and so Working Tax Credit rewards people who do not rely on state benefits but aim for independence. You may qualify for Working Tax Credit if you are on a low income and:

• You are at least twenty-five years old and work more than thirty hours a week

Or

• You are over sixteen years old, have a disability, and work more than sixteen hours a week

Or

• You are over sixteen years old, responsible for raising a child, and work more than sixteen hours a week

Or

• You are over fifty years old, and working more than sixteen hours a week after a period on benefits

If you are eligible to receive Working Tax Credit you will receive the basic rate of £1,730 a year. Depending on your individual circumstances you may also be entitled to more. If you are a single parent you may receive an extra £1,700 a year; disabled people may receive an extra £2,310 a year; those over fifty returning to work more than thirty hours a week may receive an extra £1,770 a year. You may also be entitled to extra money to help cover childcare costs accrued whilst you are out at work.

If you wish to make a claim for Working Tax Credit, you should call the claim helpline direct on 0845 300 3900. You can also ask for assistance from the advisors at the benefit office that deals with any other benefits you claim. If your claim is successful, your Working Tax Credit will be paid into an account you nominate, via direct debit.