Working Tax Credit (WTC)

Who is it for?

  • People aged 16 or over who are working 16 hours a  week or more  and who have dependent child(ren) or who have a disability or 
  • People who are 25 or over and working 30 hours or more a week or 
  • People aged 50 or over, working 16 or more hours a week who have started work within last 3 months and were previously on benefits
Who pays it?
It is calculated by HMRC Paid directly into bank accounts.

Which leaflet? And how is it claimed?
TC600 claim form and notes, obtained from any tax office or 0845 3003900 (0845 603 2000 in N.Ireland).

What are the age limits?
16 or over (25 or over if childless or not disabled ) No upper limit.

National Insurance based?

Means tested?

How long does it last?
Until end of tax year, therefore up to 52 weeks at a time, then renewable.

What is effect on other benefits?
Counted as income when calculating means-tested benefits such as housing and council tax benefit.

Is it taxable?

Increases for dependants?
Yes – if there is a second adult in the family. Certain child care costs (up to a maximum figure) also allowable. Child tax credit will be payable if claimant has children.

Payable if in EU or other?
Yes – for periods of temporary absence.

Points to watch
Foster carers are classed as being in work by HMRC so can claim Working Tax Credit even if no other employment.  As fostering income is usually below tax threshold, High rates of WTC are possible.  Claims in 2009/10 are based on 2008/9 income (unless significantly different). Child support is ignored in full as income. Low take-up so far, with many low-paid childless or disabled workers missing out. Major problems with alleged overpayments – HMRC reluctant to accept liability even in cases of official error. Not the same as Return To Work or In To Work Credit.

You can view details of benefit amounts on the Community Care Inform website

The A-Z of Benefits 2009 was compiled by Gary Vaux and Community Care Inform


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