6 May 2020

Tax Credits - Coronavirus update

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.

HMRC's statement is available on the GOV.UK website.