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 ‘frontier workers’.

Latest updates

New Upper Tribunal decision (5 May 2022): UA-2021-001182-UC - Guidance to representatives, tribunals and the DWP on the approach to obtaining information from an abusive partner to support a claim from the person fleeing abuse when a non-molestation injunction is in place >> More universal credit case law

New regulations (22 March 2022): Child Benefit and Tax Credits (Amendment) Regulations 2022 (SI.No.346/2022) - Include provision for payments under the Homes for Ukraine scheme made to people who sponsor those who have left Ukraine as a result of the Russian invasion to be disregarded as income for tax credits purposes  >> More tax credit legislation

New Court of Justice of the European Union decision (10 March 2022) - VI v Commissioners for Her Majesty’s Revenue & Customs C-247/20 (10 March 2022) - Judgment from the Court of Justice of the European Union that holds that requirement for non-EEA national mother of EEA national child to have comprehensive sickness insurance did not apply once child acquired permanent right to reside and that, in period before that, requirement was met by affiliation to NHS >> More tax credits case law

New regulations (8 March 2022): Tax Credits, Child Benefit and Guardian’s Allowance Uprating Regulations 2022 (SI.No.231/2022) - Set the rates of working tax credit, child tax credit, child benefit and guardian's allowance from April 2022 >> More tax credit legislation >> More child benefit and guardian's allowance legislation 

New Court of Appeal decision (8 February 2022) DK, R (On the Application Of) v HM Revenue and Customs [2022] EWCA Civ - Court of Appeal confirms 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 the introduction of full service universal credit >> More tax credits case law

New Upper Tribunal decision (4 February 2022): CTC/73/2021 - Reference in transition regulations to universal credit basic condition of being 'in Great Britain' under section 4(1)(c) of Welfare Reform Act 2012 is freestanding and not subject to qualifications in regulations authorised by Act >> More tax credits case law

New Court of Session decision (19 January 2022): Reclaiming motion by Her Majesty's Revenue and Customs against Mr Ali Adnan and Mrs Saima Adnan [2022] CSIH 2 (18 January 2022) - Court of Session confirms that provisions that enable refugees to make backdated child tax credit claims from the date they sought asylum continue to apply where that date was before the introduction of full service universal credit  >> More tax credit case law

New Upper Tribunal decision (6 January 2022): CTC/1514/2020 - Circumstances in which a person for whom tax credits have not been abolished may make a fresh claim following termination of an award More tax credit case law

New Upper Tribunal decision (15 December 2021): CTC/2193/2019 - Withdrawal of a universal credit claim before the Department for Work and Pensions had issued a ‘stop notice’ for the purposes of regulation 8 of the Universal Credit (Transitional Provisions) Regulations 2014 meant that the claimant’s entitlement to tax credit was not terminated under regulation 8(2)  >> More tax credit case law

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 Appeal decision (23 June 2021): Moore & Anor v Secretary of State for Work and Pensions [2021] EWCA Civ 970 (23 June 2021) - Court of Appeal refuses permission to appeal against High Court decision that treatment of maternity allowance as unearned income for the purposes of universal credit is not unlawful >> More universal 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