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Working tax credit is a means-tested government payment to help with day-to-day expenses for working people on low incomes.
You can only claim for working tax credit if you:
Otherwise, you'll need to claim Universal Credit.
Tax credits are being replaced by Universal Credit. So you may still be able to claim tax credits in certain circumstances, but most people will need to claim Universal Credit instead. The Department for Work and Pensions (DWP) plans to move all existing tax credit claimants onto Universal Credit by the end of 2024.
If you work a certain number of hours a week, and have an income below a certain level, you could get up to £2,435 working tax credit in 2024-25.
That figure is called the 'basic element' of working tax credit. This is the part that everyone claiming working tax credit receives, and it's based on how much you earn.
There are a number of extra elements that you might also be able to claim, but they depend on your circumstances. We'll explain what the extra elements are, and who they apply to, later in this guide.
You can get working tax credit whether you're employed or self-employed – you just need to be working in some way.
If the following circumstances apply to you, you might be able to claim working tax credit.
If you're single or in a couple and don't have children, you must:
However, if you're disabled and work, or if you have children, you might be eligible for working tax credit if:
You also need to be a UK resident to claim, but there are a few circumstances where you can receive working tax credit without living in the UK:
If you're part of a couple – ie married to, in a civil partnership with, or living with a partner – you must claim tax benefits jointly. You can't opt to claim on your own.
The table below shows the different working tax credit elements and how much each element is worth in 2024-25.
To find out the maximum amount you might be paid, you can add up all of the elements that apply to you.
| Working tax credit element | Maximum amount paid 2024-25 |
|---|---|
| Basic payment | £2,435 a year |
| A couple applying together | Up to £2,500 a year |
| A single parent | Up to £2,500 a year |
| Working at least 30 hours a week | Up to £1,015 a year |
| Disability | Up to £3,935 a year |
| Severe disability | Up to £1,705 a year |
| Approved childcare | Up to £175 a week for one child; up to £300 a week for two or more children |
Depending on how much you earn, the amount you get through working tax credit may be reduced. We explain how and why your tax credits may be reduced in our section below on income thresholds.
Working tax credit is made up of a number of different 'elements' or payments. You may be eligible for just one element or for a few different elements, depending on your family circumstances.
Everyone who qualifies for working tax credit receives the basic element. This is worth up to £2,435 during 2024-25, depending on your income.
You can also receive extra elements depending on your circumstances, as we've shown in our table above.
The elements you are entitled to are added together, but HMRC reduces the amount you get as your income increases.
There are income thresholds in place, which mean that those on higher incomes will receive a reduced amount of working tax credit.
This can vary depending on your circumstances, but if, for example, you're not responsible for a child or a young person, then the amount of working tax credit you receive will start to be reduced if you earn more than £7,955 a year.
For every £1 of income over this threshold you earn per year, the amount of tax credit paid decreases by 41p.
So, if your salary is £8,500 a year, you'll be earning £545 over this threshold.
For each pound, your working tax credit will be reduced by 41p – which can be worked out as 545 x 0.41 = 223.45.
This means that the maximum amount of working tax credit would be reduced by £223.45 over the year.
When applying for tax credit, or renewing your tax credit, there are some types of income you have to report – no matter how much you earn. These are:
Other income sources only have to be reported if you earn more than £300 a year from them. Note that if you're claiming as part of a couple, this £300 threshold is shared between both of you. If you claim alone, you can still earn up to £300 without declaring these sources of income.
These are:
You don't have to declare income from tax-free savings interest (earned by money saved in Isas) or rent received through the rent-a-room scheme.
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It's possible to claim working tax credit and child tax credit at the same time. If you qualify for working tax credit and are responsible for one or more children, you'll probably be able to claim child tax credit, too.
When you apply for working tax credit, you'll be told if you can apply for child tax credit – you don't have to apply for them separately.
If you have children, there are extra working tax credit elements you may be able to claim, such as:
The childcare element of working tax credit is an extra allowance to help working parents who spend money on approved childcare.
Approved childcare includes:
With the childcare element of working tax credit, you can claim up to 70% of childcare costs to a maximum of £175 a week for one child, or £300 a week for two or more children.
Unlike other benefits, tax credits usually have to be renewed each year by 31 July for you to continue receiving payments from HMRC.
The renewal process is necessary, as the amount of money you'll receive depends on how much money you earned in the previous year. So, how much you're paid in 2024-25 will depend on what you earned in 2023-24.
If you already claim tax credits, you'll usually receive a renewal pack through the post between April and July. If you haven't received it by July, contact the tax credits helpline on 0345 300 3900.
You can either complete the forms and send them in the post, renew over the phone by calling HMRC, or use the online renewal service or HMRC app.
You'll need the following information to renew your tax credits, so it's a good idea to have it to hand before you get started:
You must make sure all of your information is correct and up to date. Failure to do so could mean you'll have to repay any overpayments you receive and, if HMRC thinks you deliberately gave the wrong information in order to get more money, you could be fined up to £3,000.
Once you've renewed, the tax credit office will be in touch to let you know how much you'll be paid in tax credits next year. This should be within eight weeks of it receiving your renewal.
If you miss the 31 July deadline to renew, your tax credit payments will stop. There might not be much you can do about it unless you have a good reason for being late.
What's more, HMRC may also recover any tax credit payments made to you between April and September, as you will have lost your right to the payments for the entire current tax year.
If you feel you had a good reason for being late, contact HMRC to explain. If it accepts your reason, you may be given until 31 January to renew, but it's at HMRC's discretion.
Not having accurate figures for how much you earn isn't a valid excuse for missing the deadline. If you're not sure, you can use estimated figures when you renew your tax credits. However, you'll need to provide the accurate amounts by 31 January the following year.
You shouldn't wait until you renew your tax credits to let HMRC know if your circumstances have changed. You must tell HMRC within a month of certain changes happening or risk a fine of up to £300.
These include:
If you give HMRC the wrong information, you could be charged up to £3,000.
If you experience any changes to your circumstances that aren't listed but could have an effect on how much you receive in tax credits, contact HMRC as soon as possible – just in case.
We've answered some of the most common questions you might have about working tax credit below.
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