Tax Credits

There are two tax credits – child tax credit and working tax credit. You can claim one or both of them, depending on your household circumstances.

Working tax credit is paid to people who work and are on a low income – it does not matter whether you are an employee or self-employed, and you do not need to have children. Child tax credit is paid to people who have children. It is paid in addition to child benefit and you do not have to be working to get it.

Tax credits are administered by HM Revenue & Customs.

Latest updates

New Upper Tribunal decision (9 October 2018): CTC/3547/2016 - Child tax credit - competing claims by separated parents for same period - Rule 2.2 of regulation 3 of the Child Tax Credit Regulations 2002 and the main responsibility test - question must be decided on appeal by FTT - whether FTT decision should be set aside >> More tax credit case law

New Upper Tribunal decision (9 October 2018): CTC/1276/2018 - Transition from tax credits to universal credit - claimant made a claim for universal credit by mistake - Secretary of State issued stop notice to Her Majesty's Revenue and Customs - claimant later withdrew claim - nature of withdrawal and whether retrospective in effect >> More tax credit case law

New Upper Tribunal decision (24 August 2018): CTC/644/2018 - Date of claim for tax credits by claimant who had applied for asylum and been recognised as refugee - whether telephone request for tax credits claim form amounted to a claim for tax credits - regulation 5 of TC (Claims and Notifications) Regs 2002, CTC/31/2006 and ZM v HMRC (TC) [2014] AACR 17 considered >> More tax credit case law

New Upper Tribunal decision (24 August 2018): CTC/16/2018 - Impact of Euro-Mediterranean Agreement between the European Communities and the Kingdom of Morocco on claims for child benefit and tax credit. Art 65 of the Agreement, where it applies, prevails over national law >> More tax credit case law

New Upper Tribunal decision (24 August 2018): CTC/2925/2016 - FTT decisions on appeals against decisions made under s.16 Tax Credits Act should be phased in terms of "amending" or "terminating" an award", not in terms of "entitlement" to tax credits. Such decisions should not replicate HMRC's computer "workaround" under which s.16 decisions that should terminate an award from the outset or amend it by reducing it to nil are implemented by making an award of tax credits for a single day >> More tax credit case law

New Upper Tribunal decision (26 July 2018): CTC/2892/2017 - Whether claimant entitled to tax credits as single person - whether claimant "living together as husband and wife" - consideration of the "signposts" and parties' intentions, and how those intentions may change over time >> More tax credit case law

New regulations (29 June 2018): Child Benefit, Tax Credits and Childcare Payments (Section 67 Immigration Act 2016 Leave) (Amendment) Regulations 2018 (SI.No.788/2018) - New regulations that, amongst other measures, exempt individuals who have been granted leave to remain in the UK under section 67 of the Immigration Act 2016 from having to meet the three month residence requirement for tax credits >> More tax credit legislation

New High Court judgment (20 April 2018): SC & Ors v Secretary of State for Work and Pensions & Ors [2018] EWHC 864 (Admin) (20 April 2018) - High Court rules that the two child limit is compatible with the ECHR, but allows claim in relation to the lawfulness of the kinship care exception >> More tax credit case law

New Upper Tribunal decision (12 April 2018): CTC/865/2016 - Whether decision made under section 16 or section 18 of Tax Credits Act 2004 (TCA) - implementation of FtT decisions by HMRC - whether further HMRC decision called for - superior status of FtT decisions and how take effect under the TCA - changing of FtT decisions by HMRC >> More tax credit case law

New Upper Tribunal decision (5 April 2018): CTC/3409/2017 - Purported appeal against a non-appealable tax credit overpayment decision does not confer jurisdiction on the judge to consider the validity of the entitlement decision >> More tax credit case law

New regulations (14 March 2018): Tax Credits and Childcare (Miscellaneous Amendment) Regulations 2018 (SI.No.365/2018) - New regulations issued that provide, from 6 April 2018, for miscellaneous amendments to tax credit regulations >> More tax credit legislation

New regulations (13 March 2018): Tax Credits and Guardian's Allowance Up-rating etc. Regulations 2018 (SI.No.344/2018) - New regulations issued in relation to the 2018/2019 up-rating of tax credits >> More tax credit legislation

New Upper Tribunal decision (25 January 2018): CTC/2165/2017 - Once the disability element of working tax credit has been awarded under Case A, B. E or F, it continues in payment on an indefinite basis until the claimant either ceases to be entitled to working tax credit or ceases to have a disability which puts her or him at a disadvantage in getting a job >> More tax credit case law