Tax Credits

There are two tax credits – child tax credit and working tax credit. You can getone 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.

Now that universal credit is available across the UK, HMRC state that brand-new claims for tax credits are no longer possible except for ‘frontier workers’.

Latest updates

New regulations (18 November 2021): Tax Credits and Child Benefit (Miscellaneous Amendments) Regulations 2021 (SI.No.1286/2021) - New regulations ensure that payments under the Household Support Fund and equivalent Devolved Administration schemes are disregarded as income for the purposes of calculating entitlement to tax credits, and that entitlement is also unaffected by the introduction of Scottish disability assistance, a Scottish training programme known as 'No One Left Behind', and the Approval of Home Childcare Providers (Wales) Scheme 2021 >> More tax credit legislation

New Upper Tribunal decision (6 September 2021): CTC/903/2020 - Where a claimant has not made a claim for tax credit on the correct claim form, there is a right of appeal against whether they have provided relevant information but not against whether it may be treated as a claim >> More tax credits case law

New Upper Tribunal decision (19 July 2021): CTC/1902/2017 - Claimant who fraudulently obtained refugee status was not entitled to tax credits that she obtained relying upon that status >> More tax credits case law

New Supreme Court judgment (9 July 2021): SC, CB and 8 children, R. (on the application of) v Secretary of State for Work and Pensions & Ors [2021] UKSC 26 - the Supreme Court rules that the two-child limit in child tax credit is not incompatible with rights under Articles 8, 12 or 14 of the European Convention on Human Rights >> More tax credit case law 

New regulations (8 July 2021): Tax Credits and Child Benefit (Miscellaneous and Coronavirus Amendments) Regulations 2021 (SI.No.810/2021) - New regulations ensure that payments under the Covid Local Support Grant and equivalent Devolved Administration schemes are disregarded as income in the calculation of tax credits >> More tax credit legislation

New High Court decision (5 July 2021): DK, R (On the Application Of) v Her Majesty's Revenue and Customs [2021] EWHC 1845 (Admin) - High Court rules that provision for refugees to make a backdated child tax credit claim from the date they sought asylum continues to apply where that date was before introduction of full service universal credit >> More tax credit case law

New Court of Session decision (15 June 2021): Petition of Ali Adnan and Mrs Saima Adnan for judicial review [2021] CSOH 63 - Court of Session rules that provision for refugees to make a backdated claim for tax credits from the date they sought asylum to 31 January 2019 continues to apply >> More tax credit case law