18 May 2020
Coronavirus update – tax credits working hours
HMRC have confirmed that tax credit claimants who can’t work their normal hours because of coronavirus (COVID-19) will still receive their usual tax credits payments.
Claimants who are working reduced hours due to coronavirus or who are being furloughed by their employer will be treated by HMRC as though they are continuing to work their normal hours (ie the hours before the reduction) until the Job Retention Scheme (or the Self-employment Income Support Scheme) closes, even if they are not using either scheme.
Claimants who lose their job permanently or who permanently cease trading as self-employed should still report that change to HMRC in the usual way and will not be treated as continuing to work their previous hours.
We are awaiting confirmation from HMRC regarding the position for WTC claimants who get help with childcare costs. Those who are in qualifying remunerative work and who continue using childcare (because they are key-workers) and therefore incurring costs can continue claiming the childcare element. If the claimant has lost their job (been made redundant) or stopped trading as a self-employed person and no longer meet the qualifying remunerative work test for the childcare element, then they will no longer be able to claim help with childcare costs.