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 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

New Upper Tribunal decision (26 July 2023): GL v His Majesty's Revenue & Customs | [2023] UKUT 100 (AAC) | UA-2021-000785-TC  - Whether tax credits eight-week temporary absence rule can be relaxed in cases where claimant unable to return to UK as a result of Covid-19-related travel restrictions >> More tax credits case law

New Upper Tribunal decision (4 April 2023): UA-2021-001169-TC - In-year finalisation of tax credits award following universal credit claim should be based on ‘notional’ current year income calculated using actual income received in part-year >> More tax credits case law

New regulations (2 March 2023): Tax Credits, Child Benefit and Guardian’s Allowance Uprating Regulations 2023 (SI.No.237/2022) - New regulations set the rates of working tax credit, child tax credit, child benefit and guardian's allowance from April 2023 >> More tax credit legislation

New regulations (22 February 2023): Tax Credits and Child Benefit (Miscellaneous Amendments) Regulations 2023 (SI.No.179/2023) - Include amendments to tax credits rules to reflect the introduction of carer's assistance in Scotland in 2023/2024 >> More tax credit legislation

New Upper Tribunal decision (2 February 2023) UA-2021-001437-TC and UA-2021-001302-TC - Tribunal hearing appeal against HMRC decision to end tax credits following universal credit claim is limited to determining whether SSWP is in fact satisfied that claimant meets basic conditions of entitlement to universal credit >> More tax credits case law

New Upper Tribunal decision (19 January 2023): UA-2020-000563-TC - Tribunal hearing appeal against HMRC decision to terminate tax credits following claim for universal credit did not have jurisdiction to consider whether DWP was entitled to be satisfied that basic universal credit conditions were met  >> More tax credits case law