Tax Credits

April updating: We are currently updating revenuebenefits and adding new content to take account of the start of the 2019/2020 tax year. Keep checking back for the latest information.

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 (2 May 2019): CTC/2349/2018 - Tax credit - Claim by married woman as a single person - Whether separated in circumstances such that separation likely to be permanent (TCA 2002 s.3(5A)(a)) - FTT direction addressed to claimant that husband attend as a witness - Adverse inference drawn when husband failed to attend - Importance of assessing evidence in its cultural context - Attitudes towards separation and divorce within a Muslim community where married couple also first cousins >> More tax credit case law

New Upper Tribunal decision (30 April 2019): CSTC/283/2018 - Working tax credit - definition of "self-employed" in the Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002 - relevance of profitability and "genuine and effective" in the test of carrying on a trade, profession or occupation "on a commercial basis" - circumstances in which the Upper Tribunal will hear an appeal against a decision of the First-tier Tribunal in a case which challenges a decision under Section 16 of the Tax Credits Act 2002 when a Section 18 decision has subsequently been issued >> More tax credit case law

New regulations (16 April 2019): Child Benefit and Child Tax Credit (Amendment) (EU Exit) Regulations 2019 (SI.No.867/2019) - New regulations issued in relation to child benefit and child tax credit for those granted leave to enter or remain under the EU Settlement Scheme >> More tax credit legislation

New Upper Tribunal decision (11 April 2019): CTC/1443/2018 - Whether a school has to be registered or approved in order for a person to be a qualifying young person >> More tax credit case law

New Upper Tribunal decision (11 April 2019): CTC/2376/2017 - A decision taken by the HMRC not to award a tax credit under section 14 of the Tax Credits Act 2002 cannot be followed by a final decision under section 18 of the 2002 Act. Therefore, no section 18 decision may cause an appeal to the First-tier Tribunal against such a decision to lapse. To the extent that a three-judge panel of the Upper Tribunal in LS & RS v HMRC [2018] AACR 2; [2017] UKUT 0247 (AAC) expressed the contrary view, its comments were obiter and should not be followed >> More tax credit case law

New Upper Tribunal decision (8 March 2019): CTC/648/2018 - Payments made in settlement of employment tribunal case counted as earned income >> More tax credit case law

New regulations (27 February 2019): Tax Credits, Child Benefit and Childcare Payments (Miscellaneous Amendments) Regulations 2019 (SI.No.364/2019) - New regulations that make miscellaneous amendments to tax credits, child benefit and childcare payments >> More tax credit legislation

New High Court judgment (14 February 2019): Awodiya & Anor v HM Revenue and Customs [2019] EWHC 251 (Admin) (12 February 2019) -  High Court refuses leave to appeal in child tax credit case on the grounds that the claimants had not exhausted their alternative remedies and that it would be inappropriate to permit them to circumvent, through the mechanism of judicial review, the statutory procedures open to them >> More tax credit case law

New regulations (1 February 2019): Welfare Reform Act 2012 (Commencement No.32 and Savings and Transitional Provisions) Order 2019 (SI.No.167/2019) - New regulations issued in Great Britain in relation to the abolition of child tax credit and working tax credit from 1 February 2019. Equivalent changes made in Northern Ireland by the Welfare Reform (Northern Ireland) Order 2015 (Commencement No.14 and Savings and Transitional Provisions) Order 2019 (SR.No.7/2019) >> More tax credit legislation