Tax Credits

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

Now that universal credit is available across the UK, HMRC state that brand-new claims for tax credits are no longer possible except for some people who are granted refugee status.

Latest updates

New uprating regulations (29 February 2024): Tax Credits, Child Benefit and Guardian’s Allowance Uprating Regulations 2024 (SI.No.247/2024) - New regulations that set the rates of working tax credit, child tax credit, child benefit and guardian's allowance from April 2024 >> More tax credit legislation

New tax credit regulations (22 February 2024): Tax Credits (Miscellaneous Amendments) Regulations 2024 (SI.No.176/2024)  - New regulations make miscellaneous amendments to tax credit regulations including new disregards of certain compensation payments and changes relating to the roll out of Scottish disability assistance   >> More tax credit legislation

New Court of Appeal decision (22 January 2024): Commissioners for His Majesty's Revenue and Customs v Arrbab [2024] EWCA Civ 16 - Court of Appeal rules that section 38(1A) Tax Credits Act 2002 provisions that prevent appeals following HMRC refusal to extend time to seek review are ‘ultra vires’ the enabling legislation >> More tax credits case law

New regulations (26 October 2023): Child Benefit and Tax Credits (Miscellaneous Amendments) Regulations 2023 (SI.No.1139/2023) - New regulations that ensure that both one-off and annuity payments made under the Victims of Overseas Terrorism Compensation Scheme 2012 are to be disregarded in calculations of income >> More tax credit legislation