• In this section we describe in brief what you can expect to get if you claim tax credits, with links to parts of our commentary where matters are set out in greater detail.



• In summary, working tax credit (WTC) is for people in work, whether or not they have children; while child tax credit (CTC) is for people with children, whether or not they are in work. It is possible to claim WTC and CTC together if your circumstances permit.




• First, you need to know whether you can claim tax credits. In order to claim tax credits you have to be:

  • 16 years of age or over (see below for additional age requirements);
  • in the UK;
  • a single person, a lone parent, or a couple (which for tax credits means a married couple, civil partners, or a cohabiting couple whether of opposite sexes or of the same sex).

Working tax credit

• You may be entitled to WTC if you are either employed or self-employed, and you work sufficient hours in the week. The kind of work that qualifies you for WTC is known technically as qualifying remunerative work. If your normal hours of work are not less than 16 per week, you may get WTC if you are aged 16 or over and fall into one of the following categories:

  • you are a couple and one or both of you is responsible for a child or a qualifying young person ;
  • you are a lone parent;
  • you have a disability which makes it difficult for you to get work; or
  • you are over 50 and are returning to the labour market after a period of unemployment (see here for detailed conditions of the 50 plus element).



• In all other cases you have to be aged 25 or over and work at least 30 hours a week to get WTC, though if you are a couple you will qualify if the number of hours you work between you adds up to at least 30 a week.




• Payments of WTC consist of a basic sum, or basic element and extra sums, or elements, if you fulfil particular conditions. These are:

  • a disability element if you have a disability which makes it difficult for you to get work;
  • a 30 hour element if you work more than 30 hours a week;
  • a second adult element if you are a couple;
  • a lone parent element if you are a lone parent;
  • a severe disability element if you or your partner are getting DLA care component at the highest rate, or an attendance allowance at the higher rate;
  • a 50 plus element if you are over 50 years of age and have recently returned to the job market after a period out of work and receiving benefits.



• If you are on one of the following benefits - income support, income-based jobseeker's allowance or pension credit - you are entitled to maximum WTC. This means that you get the full basic element shown here plus the full amount of any other elements to which you are entitled as shown above.



• You can also get maximum WTC if your income is no more than £6,420 in 2007/08. For every £ by which your income exceeds that amount, your income is reduced by 39p. See the example.

Childcare element

• If you spend money on childcare so that you can work, you may be entitled to claim the childcare element of WTC of WTC. This gives you help with up to £175 a week eligible childcare costs if you have one child in childcare, £300 if more than one. The maximum amount of help given is 80% of the eligible costs in 2008/09. But note the important conditions attached to this element, described at the link given above.

Child tax credit

• You may be entitled to child tax credit (CTC) if there are children or young persons in your household for whom you are responsible. A child or young person is defined here. Broadly, you can get CTC for a child under 16, and for a young person over 16 but under 20 (formerly 19) who is in full-time education (but not advanced education) or certain types of training.




• The maximum amounts you can get are shown here. They are:

  • a basic amount known as the family element (which is doubled if you have a child under 1), plus
  • an amount for each child, plus
  • an extra amount if your child is disabled, plus
  • a further sum if your child is severely disabled.



• If you are on one of the following benefits - income support, income-based jobseeker's allowance or pension credit - you are entitled to maximum CTC as shown in the above link.



• You are also entitled to maximum CTC if you do not also get WTC and your income does not exceed £15,575 in 2008/09. For every £ by which your income exceeds that amount, your income is reduced by 39p.



• If you are entitled to WTC as well as CTC, the 39% reduction does not affect your CTC until it has reduced the amount of WTC you get, including the childcare element, to nil. This figure can work out a lot higher than £15,575 depending on your circumstances.



• Working out the tax credits you are entitled to is complex. See the examples and the explanatory commentary for more detail on the calculations.