Working Tax Credits - Changes

My wife and I are currently claiming working tax credits and we’ve heard there’s a significant change this year in order to continue to qualify. Could you explain what’s changed please?    

1st April 2012

Before April 2012, couples responsible for children, with one partner working at least 16 hours a week could get Working Tax Credit.

From 6 April 2012, the rules for couples with children have changed. Single people who are responsible for children (for example single parents) are not affected by the new rules.

If you're a couple with children, your joint working hours now usually need to be at least 24 a week to qualify.

This means:

  • if you both work your joint weekly hours must be at least 24, with one of you working at least 16 hours a week
  • if only one of you works, that person must be working at least 24 hours a week

If neither of these applies, your Working Tax Credit will probably stop from 6 April 2012.

By Jo Nockels

Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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