When HM Revenue and Customs (HMRC) receive your claim for Working Tax Credit (WTC), they check to see if you meet the basic conditions.
If you do, they then begin to work out how much you might be entitled to. The first step is to work out the maximum amount of WTC you can get based on your circumstances. If you are part of a couple, HMRC look at you together to work out which elements you are entitled to from the following list:
1. Basic element
2. Lone parent element
3. Second adult element
4. 30 hour element
5. Disability element
6. Severe disability element
7. 50+ element
8. Childcare element
The maximum WTC is found by adding together all of the ‘elements’ you are entitled to. The conditions for each element can be complicated and this factsheet gives only a basic outline of the main points and is not intended to be a complete guide. Below each element you will find links to more detailed information.
After finding the maximum, the next step HMRC take is to … reduce the maximum amount based on your income. This will normally be your previous year income, although if your income falls or you earn £10,000 more than last year it will be based on your current year income.
If you meet the age and working hours conditions, and some other basic requirements, you will have the basic element included. You only get one basic element, even if you are part of a couple and therefore making a joint claim.
More information:
Working tax credit - basic element If you are single and have responsibility for a child (or children) or a young person at sixth-form level (or similar) or in certain types of training, and you are working at least 16 hours per week, you will be entitled to the lone parent element.
More information:
Lone parent element If you are part of a couple, and you (or your partner) meet the qualifying conditions for age and hours worked, you will be entitled to the second adult element. You only get one second adult included in each claim.
Not all couples are entitled to a second adult element. If one of you qualifies for the 50+ element and works fewer than 30 hours you won’t get the second adult element unless one of you qualifies for the disability element or you are responsible for a child (or qualifying young person) or you qualify for working tax credit because you are aged 60 or over.
If one of you is serving a custodial sentence of more than 12 months, or one of you is subject to immigration control, you won’t be entitled to the second adult element unless either of you is responsible for a child (or young person).
More information:
Second adult element If you are single and work at least 30 hours per week you will qualify for the 30 hour element.
If you are part of a couple and one of you works at least 30 hours per week, you will qualify for the 30 hour element. You will only qualify for one 30 hour element even if you both work at least 30 hours per week.
If you are part of a couple and have responsibility for at least one child (or young person), you can add your hours together to qualify for the 30 hour element as long as one of you works at least 16 hours.
For example, if Brian works 20 hours and his wife Susan works 12 hours and they have two children, they will qualify for the 30 hour element.
Couples can add hours together only to work out if they qualify for the 30 hour element. You cannot do this to meet the hours rules set out in the box above.
More information:
How your tax credits entitlement is worked out
The disability element is very complicated. You might have a disability, but still not qualify for this element because you might not meet the tax credit definition of disability.
To get this element you need to meet all three requirements:
1. You must work at least 16 hours per week;
2. You must be at a disadvantage in getting a job (have a look at the TC956 which sets out the situations when you will be treated as at a disadvantage);
3. You must receive, or have previously received, a qualifying disability benefit
If you are part of a couple, and you both meet all three conditions, you will be entitled to two disability elements.
HMRC have set out a list of situations where they accept a person is at a disadvantage in getting a job. You might consider yourself disabled, but you will only pass the test if one of the situations on the TC956 applies to you. HMRC also set out what disability benefits qualify and when you must have received them to pass that part of the test.
Only if you meet these requirements will you qualify for the disability element. If you are unsure, you should seek help from a local advice agency such as Citizens Advice.
More information:
Factsheet on disability Working tax credits - disability element
Leaflet TC956
You have a disability - can you get extra WTC?
This element is different to the disability element. You can get this even if you don’t qualify for the disability element. This is because there is no requirement to work to get it. You can claim if you are single or part of a couple. If you have a partner who doesn’t work but meets the conditions below, you will get the severe disability element included in your claim.
To qualify you (or your partner) must receive the highest rate care component of disability living allowance OR the higher rate of attendance allowance.
If you get the highest rate care component of disability living allowance, but this is suspended whilst you are in hospital, you will still qualify for the severe disability element.
It is easy to get confused with the different levels of disability living allowance (DLA).
There are two parts to DLA – mobility and care.
There are 3 mobility levels: lower, middle and highest
There are 2 care levels: middle and higher.
Only the highest rate of the care part of DLA allows you to receive the severe disability element. If you receive any of the other parts of DLA, even the highest rate of mobility, you will not qualify for this element.
If you are unsure which level of DLA you get, check your award letter from the Department of Work and Pensions or contact the disability benefits helpline.
If you are part of a couple and both of you meet the conditions, you can get two severe disability elements.
More information:
Working tax credit - severe disability element You can get the 50+ element if you are aged 50 or over and returning to work after a period claiming certain benefits.
There are two rates of the 50+ element, the first is given to those who work at least 16 hours per week and the other to those who work at least 30 hours per week. (You can qualify for either one or the other, not both).
You can generally only get the 50+ element for 12 months from when you started working.
More information:
Working tax credit - 50 plus element
You're 50 or over - extra Working Tax Credit payments
The childcare element helps you if you use registered or approved childcare. It can help with your childcare costs up to the maximum limit of £175 per week for one child and £300 for two or more children.
The maximum you can get will be 70% of these limits, so £122.50 per week for one child and £210 per week for two or more children. The actual amount of help you get will depend on your household income.
Not everyone who pays for childcare will qualify for the childcare element. If you are single you must work at least 16 hours each week. If you are part of a couple, you must both work at least 16 hours each week unless one of you is incapacitated, in hospital or in prison.
One important point is that if you receive childcare vouchers from your employer, or if your childcare costs are paid from any other source, you cannot claim the childcare element for the costs covered by the vouchers.
More information:
Working tax credit - childcare element
Help with childcare costs - do you qualify for extra tax credits?
Working tax credit - help with the costs of childcare
