Working Tax Credit – Extra money for people in work on a low income in UK

Working Tax Credit – Extra money for people in work on a low income in UK
Working Tax Credit (WTC) is a state benefit in the United Kingdom paid by HMRC to support people who are working and on a low income. It does not matter whether you are an employee or self-employed. In addition, people may also be entitled to Child Tax Credit (CTC) if they are responsible for any children. The basic amount of WTC is up to £1,960 a year – could get more (or less) depending on circumstances and income. Do not miss opportunity to top up your income.

Who can get

You can get WTC if you or your partner are working enough hours a week and your income is low enough. Also you must be living in the UK. If you are from abroad, WCT depends on your immigration status.
You can’t claim tax credits and Universal Credit at the same time.

 

WTC depends on many factors:

 

  • Age. You must be 16 or over. You must be 25 or over if you don’t have children or you don’t have a disability.
  • Hours a week. You must work a certain number of hours a week.
Circumstance
Hours a week
Aged 25 to 59
At least 30 hours
Aged 60 or over
At least 16 hours
Disabled
At least 16 hours
Single with 1 or more children
At least 16 hours
Couple with 1 or more children
Usually, at least 24 hours between you (with 1 of you working at least 16 hours)
  • Income. There’s no set limit for income because it depends on your circumstances (and those of your partner). For example, maximum household income in 2016-17 (excluding disability element and childcare and the annual income is before tax and National Insurance are taken off):
Number of kids
Maximum income in 2016-17
None, single
£13,000
None, couple
£18,000
One
£25,000
Two
£35,000
Three
£40,000

How much will you get

The maximum WTC you can get is calculated by adding together different elements which are based on your circumstances.

 

Elements
Maximum amount paid in 2016-17
Basic element – one per single claimant or couple
£1,960
Couples’ and lone parents’ element (paid in addition to the basic element but only one Couples’ element allowed per couple
£2,010
30 hour element (paid if you work 30 hours or more per week but only one element allowed per couple)
£810
Disabled worker element. (a couple can receive two elements if both claimants are eligible)
£2,970
Severe disability element (a couple can receive two elements if both claimants are eligible).
£1,275
Childcare element, childcare for one child
£175 a week
Childcare element, childcare for two or more children
£300 a week

 

More information you can find on the GOV.UK.

 

Contact us if you believe you are entitled to WTC. We can also help with other benefits.

 

Contact us

 

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About Diana Hurta

Founder, CEO of DH Accounts & Legal Ltd. Business Management Consultant, Accountant and Tax Advisor.

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