1. Home
  2. Tax Guides
  3. Tax Credits and Benefits
  4. What is working tax credit?

⚠️ Universal Credit (UC) is gradually replacing tax credits, and some other social security benefits. Universal credit is now available across the UK and HMRC state that it is no longer possible for anyone to make a brand-new claim for tax credits. Instead, people are expected to claim UC or pension credit if appropriate. Existing tax credit claimants can continue to renew their tax credits and/or add extra elements to their claim. See our tax credit page for more information. Our understanding is that the majority of existing tax credit claimants will move to either universal credit or pension credit. It is expected that the majority of people who have not reached state pension age, and who continue to claim tax credits, will be invited to move to UC by the end of 2024. You can find out more about this in our universal credit section. 

What is working tax credit?

Updated on 11 April 2023

Tax credits and benefits

Working tax credit (WTC) is paid by HM Revenue & Customs (HMRC) to support people who work and are on a low income – it does not matter whether you are an employee or self-employed. On this page we answer questions on entitlement and claiming WTC.

Illustration of people and a pile of coins

Do I qualify for working tax credit (WTC)?

To qualify for WTC you must meet the basic conditions which are:

  • be aged 16 or over;
  • be in the UK; and
  • not be subject to immigration control

You must also work a certain number of hours each week. The number of hours you need to work varies depending on your age and household circumstances.

How many hours do I need to work to get WTC?

In the case of a single claim:

  • the claimant is aged 16 or over and works at least 16 hours a week and: is responsible for a child or qualifying young person; or
  • qualifies for the disability element of WTC; or
  • the claimant is aged 60 or over and works at least 16 hours a week; or
  • the claimant is aged 25 or over and works at least 30 hours a week.

In the case of a joint claim where there is no responsibility for a child or qualifying young person:

  • the claimant is aged 16 or over and works at least 16 hours a week and qualifies for the disability element of WTC; or
  • the claimant is aged 60 or over and works at least 16 hours a week; or
  • the claimant is aged 25 or over and works at least 30 hours a week.

In the case of a joint claim where there is responsibility for a child or qualifying young person:

  • the claimant is aged 16 or over and works at least 16 hours a week and qualifies for the disability element of WTC; or
  • the claimant is aged at least 16 and is a member of a couple where one partner works at least 16 hours a week and the total number of hours for which the couple work is not less than 24 hours a week; or
  • the claimant is aged at least 16 and is a member of a couple where one partner works at least 16 hours a week and the other partner is incapacitated, in prison, in hospital or entitled to carer’s allowance or carer’s assistance (Scotland); or
  • the claimant is aged 60 or over and works at least 16 hours a week.
  • The work done must be employed or self-employed.

My work has changed – can I still get WTC?

If your normal working hours reduced (including to Nil) on or after 1 October 2021 the usual tax credit rules apply. You must report any changes to your normal working hours. See our guidance for advisers  which explains how temporary changes to hours are treated for working tax credit under normal rules and also explains in more detail the special coronavirus measures that were in place until 1 October 2021.

I am on an apprenticeship – can I claim WTC?

HMRC say that the hours you work as an apprentice will count as remunerative work for WTC purposes if:

  • you have a contract of employment for your apprenticeship.
  • you are attending a scheme (apprenticeship) where your payment is classed as earnings (as opposed to reimbursement of expenses) and subject to income tax and National Insurance contributions.

But, if you only receive a non-taxable training allowance, monies in connection with participating in the Intensive Activity Period (part of jobseekers’ allowance schemes), a sports award or no money other than tax-exempt discretionary payments, your apprenticeship working hours will not be classed as being in remunerative work.

This means that if you have a contract of employment and your pay is classed as taxable earnings, not just reimbursement of expenses or a non-taxable training allowance, it should be classed as remunerative work for WTC.

How much will I get?

The amount you get depends on which elements you are entitled to, your taxable income (either for the current year or previous year) and whether an overpayment is being deducted.

The following elements make up a WTC award:

Basic element

always included

Lone parent element

if you are a lone parent

Couple element (Second adult element)

if you are a couple making a joint claim (although some couples may not qualify for the second adult element where one partner is subject to immigration control)

Disability element

if you work at least 16 hours a week, have a disability which puts you at a disadvantage in getting a job and are receiving or have recently received a qualifying benefit. For a couple, if you both qualify, you get two disability elements

Severe disability element

if you get the highest rate of disability living allowance (DLA), armed forces independence payment (AFIP), the enhanced rate daily living component of personal independence payment (PIP), higher rate attendance allowance (AA) or the higher rate daily living component of Scottish disability assistance.

. You do not need to be working to get the severe disability element of tax credits. For a couple, if you both qualify, you get two of these elements added.

30 hour element

if you work at least 30 hours a week. Couples with children can combine their hours to meet the threshold to qualify for the 30-hour element, as long as one partner is working at least 16 hours a week. Only one element is paid even if both work 30 hours.

Childcare element

to help with childcare costs. Not everyone qualifies and not all costs are covered. You must also be using a registered or approved provider. Check the GOV.UK website to see if you qualify.


The GOV.UK website has a tax credits calculator which may you give you a very rough estimate of what you might get. There are also other calculators available from third parties that can help you work out if you are entitled to tax credits and other benefits You should be aware that different calculators may show results for different periods.

Things to note about WTC

  • You may still be able to get WTC if you are off work because you are sick or on maternity, shared parental or adoption leave or parental bereavement leave. Other temporary absences from work may also be covered.
  • It is the hours you normally work that count for WTC. This may not be the same as your contracted hours, for example if you have regular overtime.
  • If you are a term-time worker, your WTC claim should be based on the hours you work during term-time. Payment continues over the school holidays. However, if you are a seasonal worker (and only work a few months each year), you may not be entitled to WTC for the periods you do not work.
  • If you are a foster carer or shared lives carer, HMRC treat you as self-employed for tax credits. You can, therefore, qualify for WTC for this work.
  • If you are self-employed: when working out your weekly hours, HMRC says you can include not only the hours costed to your client/customer but also time spent on other ‘business’ tasks e.g. trips to wholesalers, book-keeping, advertising, travel. All hours worked must be for payment or in expectation of payment. To claim working tax credit as a self-employed person you have to show that you are:
    • Engaged in carrying on a trade, profession or vocation on a commercial basis
    • This must be with a view to realisation of profit
    • The work must be organised and regular
  • If your normal working hours change, your WTC payments may also change. You must tell HMRC within one month of the change. If you stop work, or your hours drop below the threshold for your WTC claim, you may get what is called a ‘WTC run on’ for four weeks. This means you should continue to get WTC, even if you would no longer qualify, including all the elements you were previously getting. If you find a new job or increase your hours again within that four-week period, your entitlement to working tax credit should continue.

More information

This section of the site gives a brief overview of the basic conditions for working tax credit. For more detailed information, visit the following pages on our website for advisers:

Tax guides

Introduction to the tax system How do I work out my tax? What income is taxable? What tax allowances am I entitled to? What tax rates apply to me? How is my tax collected? What if I cannot pay my tax bill? Do I need to complete a tax return? Self Assessment: understanding the basics What is Simple Assessment? How do I claim tax back? How do I claim back tax I have overpaid through PAYE on wages or pensions? How do I claim back tax if I complete a tax return? How do I claim back tax if I am taxed under the Construction Industry Scheme (CIS)? How do I claim back tax on savings income? How do I claim a marriage allowance refund? How do I claim back tax on a payment protection insurance (PPI) pay-out? Should I use a tax refund company? What is National Insurance? How do I get a National Insurance number? What are Specified Adult Childcare credits? What is Scottish income tax? What is devolution? Do I have to pay Scottish income tax? How does Scottish income tax work? What is Welsh income tax? Do I have to pay Welsh income tax? Do I have to join a pension scheme? Tax relief on your pension contributions HMRC digital services Enquiries, penalties, appeals, complaints and debt Enquiries How to survive an enquiry by HMRC Tax penalties Tax appeals Alternative Dispute Resolution How do I complain to HMRC? What if I cannot pay my tax bill? What if I have a tax credits overpayment?
Am I employed, self-employed, both or neither? Working through a limited company What is the national minimum wage? How do I work out my tax? What income is taxable? What tax allowances am I entitled to? What tax rates apply to me? How is my tax collected? How is tax collected on taxable state benefits? How do I check my coding notice? Do I need to complete a tax return? What tax do I pay on redundancy payments?Employment benefits and expenses What are benefits-in-kind? What payments and benefits are non taxable? What if I incur expenses in relation to my job? What travel expenses can I claim? What if I use my own car for business purposes? Payroll giving Allowances and expenses paid to armed forces personnel and deductions from their income Pensions and employees What is automatic enrolment for employees? What National Insurance do I pay as an employee? How do I repay my student loan? What if I do not pay enough tax? What if I pay too much tax? What if I work abroad temporarily? What if I am in the armed forces and work overseas? First time workers Apprenticeships

Share this page