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

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