Working Tax Credit (WTC) is administered by the HMRC. It is a means-tested or income-related tax-free payment for those in paid work.
You can get WTC if you meet the following conditions at the time you make your claim:
- You are at least 16 years old; and either you or your partner are working for 16 or more hours a week, and meet one of the following conditions:
- You are responsible for a child or young person and you are a single parent; or
- You have a physical or mental disability that puts you at a disadvantage in getting a job and you were previously receiving some form of disability benefit; or
- You or your partner are aged 60 or over; or
- You or your partner are aged 25 or over and work at least 30 hours per week; or
- You are a couple, one or both of you are responsible for a child or young person and one of you works at least 16 hours per week and you work at least 24 hours a week between you; or
- You are a couple, one or both of you are responsible for a child or young person and one of you works at least 16 hours a week where the other partner is, in hospital or prison, or is entitled to CA, or is getting certain benefits due to sickness or disability.
- You satisfy the residence and presence conditions and are not subject to immigration control.
The basic amount of WTC is up to £1960 per year. You could get more (or less) depending on your circumstances and income. The maximum amount of WTC is worked out by adding together various elements depending on individual circumstances. The elements are:
- A basic element
- A couple element
- A lone parent element
- A 30 hour element if the claimant, or the claimant and partner together, work 30 hours or more per week and have children
- A disabled worker element and in receipt of certain benefits and working at least 16 hours per week, you have to satisfy a 'disability test'
- A severe disability element
- A childcare element providing up to 70% of 'eligible' childcare costs
Payments of WTC will be made directly into the claimant's nominated bank account or similar account. It is awarded for a complete tax year and, while a claim made after April may run only from the date of claim to the end of the tax year, there are circumstances where limited backdating may be applied. It is important to keep the HMRC informed of any change in circumstances which might affect the amount of tax credit due in order to avoid any underpayment or overpayment.
Further information and application packs for WTC are available by ringing the Tax Credit Helpline on 0345 300 3900 (textphone 0345 300 3909) or from HMRC Enquiry Centres and Jobcentre Plus offices.
Whilst all the information given in this document was correct at the time of going to press, DIAL Doncaster cannot be held responsible for any subsequent changes.