1. What is working tax credit

Working tax credit (WTC) helps supplement low wages. It is administered by HMRC. It is paid to people who are working (employed or self-employed) for at least 16 hours a week or, in some cases, 24 or 30 hours a week. Full-time and part-time students are eligible. You get a higher amount if you work 30 hours a week or have a disability. You can get childcare costs paid with WTC. The amount of WTC you get depends on your income in the tax year.

Note: you cannot make a new claim for WTC, as it is in the process of being replaced by universal credit (UC). If you already get WTC you can add child tax credit to your award, and vice versa. If you already get WTC, the government plans to transfer you to UC and end all tax credits awards by April 2025.