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 (7 September 2020): CTC/1221/2019 - When a person who re-claims a tax credit avoids the general prohibition on new claims for tax credits; that prohibition being part of the scheme for implementing Universal Credit

New legislation (4 September 2020): Tax Credits (Coronavirus, Miscellaneous Amendments) (No. 2) Regulations 2020 (SI.No.941/2020) - New regulations in relation to the treatment of COVID-19 payments and grants to self-employed people in calculating entitlement to tax credits >> More tax credit legislation

New legislation (3 July 2020): Child Benefit and Child Tax Credit (Persons of Northern Ireland) (Amendment) Regulations 2020 (SI.No.672/2020) - New regulations in relation to ensuring that family members of the people of Northern Ireland have the same access to child benefit and child tax credit as family members of Irish citizens >> More tax credit legislation

New legislation (22 May 2020): Tax Credits (Coronavirus, Miscellaneous Amendments) Regulations 2020 (SI.No.534/2020) - New regulations that make miscellaneous amendments to tax credits regulations in consequence of the establishment of the Coronavirus Job Retention Scheme (CJRS) >> More tax credit legislation

Working tax credit uprating (27 March 2020): Section 77 of the Coronavirus Act 2020 provides for an increase in the working tax credit basic allowance from £1,995 to £3,040 for 2020/2021 >> More tax credit legislation

New regulations (17 March 2020): Tax Credits, Child Benefit, Guardian’s Allowance and Childcare Payments (Miscellaneous Amendments) Regulations 2020 (SI.No.297/2020) - New regulations that, from 6 April 2020, make miscellaneous amendments in relation to tax credits, child benefit, guardian's allowance and the childcare payment scheme >> More tax credit legislation

New Upper Tribunal decision (16 March 2020): CSTC/174/219 - Held that the First-tier Tribunal’s decision that the person who was the contact point for the children’s school, GP and dentist was ultimately determinative as the person who had the main responsibility was an error of law for the reasons in paragraph 8. The Judge directed the new tribunal to follow the approach set out by Judge Jacobs in paragraph 38 of PG v Commissioners of HMRC and NG (TC) [2016] UKUT 216 (AAC) >> More tax credit case law

Tax credits uprating (13 March 2020): Tax Credits and Guardian’s Allowance Up-rating Regulations 2020 (SI.No.298/2020) - New regulations that provide for the new tax credit rates being introduced from 6 April 2020 >> More tax credit legislation

New legislation (4 March 2020): New consolidated versions of the main tax credit legislation are now available via our Tax Credits: Statutory instruments and Tax Credits: Statutes sections >> More tax credit legislation

New Upper Tribunal decision (6 February 2020): CTC/9/2019; [2017] UKUT 55 (AAC) holds that the First-tier Tribunal is not required, as a matter of law, to telephone an absent claimant before deciding to go ahead, but rather that rules 2 and 31 should be applied. The present case considers the application of PS and those rules to a case involving 7 linked appeals, listed for a whole day, attended by two presenting officers and with large amounts of money at stake and concludes that the FtT was obliged to telephone the claimant in the circumstances of the case >> More tax credit case law

New Upper Tribunal decision (16 January 2020): CTC/1937/2018 - Case one of some 40 linked appeals where the identities of the appellants' employers and childcare providers were similar and/or identical. Cases heard in tranches - HMRC argued that neither employment nor childcare provider was genuine - First-tier Tribunal's credibility findings and appellate review >> More tax credit case law