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 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 

New regulations (22 April 2021): Social Security and Tax Credits (Miscellaneous and Coronavirus Amendments) Regulations 2021 (SI.No.495/2021) - New regulations that provide for the £500 payment being made under the 'Covid-19 support scheme: working households receiving tax credits' to be disregarded as income in the calculation of tax credits >> More tax credit legislation

New Upper Tribunal decision (7 April 2021): CTC/2649/2019 & CTC/392/2020 - Termination of joint tax credits award when spouse died did not constitute unlawful discrimination against widower who was not eligible for universal credit due to capital >> More tax credits case law

New regulations (15 February 2021): Tax Credits, Child Benefit and Guardian’s Allowance Up-rating Regulations 2021 (SI.No.156/2021) - New regulations that provide for the uprating of tax credits, child benefit and guardian’s allowance from April 2021 >> More tax credit legislation

New regulations (15 January 2021): Tax Credits Reviews and Appeals (Amendment) Order 2021 (SI.No.44/2021) - New regulations extend HMRC’s powers to review finalised tax credit awards to enable further backdating of disability element awards >> More tax credit legislation

New Upper Tribunal decision (18 December 2020): CSTC/466/2019 - First-tier Tribunal in its social entitlement jurisdiction is a 'court' within section 1 of the Vexatious Actions (Scotland) Act 1898 >> More tax credit case law

New legislation (11 December 2020): Tax Credits, Childcare Payments and Childcare (Extended Entitlement) (Coronavirus and Miscellaneous Amendments) Regulations 2020 (SI.No.1515/2020) - New regulations include amendments to tax credits in consequence of coronavirus and the Job Retention Scheme, and in relation to disregarding certain payments as income, including those from COVID-19 related payment schemes >> More tax credit legislation

New legislation (10 December 2020): Social Security, Child Benefit and Child Tax Credit (Amendment) (EU Exit) Regulations 2020 (SI.No.1505/2020) - New regulations make changes to domestic legislation to ensure that rights of third-country nationals under association agreements replaced by trade and continuity agreements are protected after the UK exits the EU >> More tax credit legislation

New Upper Tribunal decision (4 December 2020): CTC/1974/2019 (V) - Tribunal was correct to find that no reduction could be made from claimant’s income for investments in overseas property when assessing tax credits entitlement >> More tax credit case law