Money

Tax and benefits

Working tax credit

Extra help is available for people working 30 or more hours per week, disabled people, or people aged 50 or over who are returning to work after a period on benefit.

How much will you get?

The amount you receive depends on various things, including your annual income. The payment is made up of different elements:

Working Tax Credit elements

Maximum amount due for the 2006-2007 tax year

Basic element paid to everyone who is entitled to receive Working Tax Credit £1,665

Second adult element £1,640

Lone parent element £1,640

An element payable if you work (jointly if you have one or more children) 30 hours or more per week £680

Disability element £2,225

Severe disability element £945

An element payable if you're aged 50 or over and returning to work after a period on benefit

£1,140 (if you're working between 16 and 29 hours per week)

£1,705 (if you're working over 30 hours or more a week)

A childcare element, where you can get back up to 80 per cent of your costs for eligible childcare

£175 maximum eligible cost per week if you're paying for one child

£300 maximum eligible cost per week if you're paying for two or more children

The other tax credit you may be entitled to if you have a child or qualifying young person in full-time non advanced education is called Child Tax Credit.

More about Child Tax Credit

How to find out if you qualify

To claim Working Tax Credit, you have to be aged 16 or over, and work for 16 hours or more a week and be responsible for a child or qualifying young person OR have a disability that puts you at a disadvantage in getting a job OR be aged 50 or over and be returning to work after a period on benefit. Otherwise you must be aged at least 25 and work 30 or more hours a week. Usually you have to live in the UK, but you may still qualify if you live somewhere else.

<li>Tax Credits are based on your household income and circumstances, so you need to provide information on your (and your partner's if you have one) income and the number of hours you normally work

  • any benefits you or your partner may be claiming
  • the number and ages of children in your family
  • the amount you spend each week on childcare
How to claim

You can:

  • claim Child Tax Credit or Working Tax Credit by post
  • report a change of circumstance by phone or post
  • renew your tax credits award by phone or post (once you get the form sent to you in April or May)

Lines are open every day day (except Christmas Day, Boxing Day, New Year's Day and Easter Sunday) from 8.00 am to 8.00 pm.

Or you can pick up a claim pack from your nearest HMRC Enquiry Centre or Jobcentre Plus.

Contact your nearest HMRC Enquiry Centre (opens new window)

Contact your local Jobcentre Plus office (opens new window)

If your circumstances change

If you're already getting Working Tax Credit it is very important to let HMRC know if your family or income circumstances change, so that you get paid the correct amount.

How to notify a change in family or income circumstances

What to do if you have problems or complaints

You can get a leaflet about the complaints procedure from the Tax Credits helpline:

call 0845 300 3900, textphone 0845 300 3909.

If you disagree with a tax credit award you can appeal.

Appealing against a tax credit award or penalty

More useful links

Child Tax Credit factsheet

Working Tax Credit factsheet

'Benefits and financial support' factsheets

Download and print HMRC tax credits leaflets (opens new window)

Information for disabled parents (disabled people section)

Child Tax Credit and Working Tax Credit leaflet WTC6 (opens new window)

 

The opinions expressed are those of the author and are not held by Saga unless specifically stated.
The material is for general information only and does not constitute investment, tax, legal, medical or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation.