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Jane Frost, head of HM Revenue & Customs’ Individuals Customer Directorate, urges working people on low incomes to check their entitlement to Working Tax Credits.

Are you Working and on a Low Income? Could you do with More Money Coming In?

If the answer to these questions is “yes”, you could be one of those who are missing out on extra cash because they don’t realise they are entitled to Working Tax Credits.

Working Tax Credits provide financial support to working households on lower incomes by giving them an additional and regular cash boost.

Most workers with children who are entitled to tax credits have already claimed and are benefiting from the money they receive. But there are still many workers who could use some extra money but who are not aware of what they could be getting, for example those aged 25 or over without children, or without children at home.

HMRC’s research shows that many of those who fail to claim are aged 50 and over and some may have experienced a drop in income. The average amount of Working Tax Credits that goes unclaimed is £1,600 a year, with some people qualifying for much more.

Can I Claim Working Tax Credits?

If you are aged 25 or over and work 30 hours or more per week, you may well be able to claim Working Tax Credits whether or not you have dependent children. It doesn’t matter whether you are single, part of a couple, employed or self employed, own property or have savings. Single people who earn up to around £13,000 a year can claim. Similarly, couples living together who have a combined income of under £18,000 a year can make a joint claim.

Example

Fifty-two year old Joe Bloom is an example of someone who has benefited from Working Tax Credits.

A widower who lives on his own, Joe works 35 hours a week and earns £10,556 a year. His daughter advised him to call the Tax Credits Helpline and see if he was eligible. He now receives an extra £20 a week in Working Tax Credits.

Special Help for Disabled Workers, People Over 50 Returning to Work, and Working Parents Under 25

For certain people who might find it difficult to work full-time, the qualifying rules are different. For example, if you are aged 16 or over and you have a disability (and have previously received welfare benefits) you may qualify for Working Tax Credits provided you work at least 16 hours per week. The same is true if you are aged 50 or over and are returning to work for at least 16 hours a week, having previously been on benefits. And if you are aged 16 or over, are responsible for one child or more and either you or your partner work at least 16 hours a week, you may also qualify.  

So How Do I Go About Finding Out More?

To find out if you qualify for Working Tax Credits and how much you might receive;

• take a look at the online calculators available on the HMRC website at Tax Credits Guide - Tax Credits Questionnaires
• call the Tax Credits helpline on 0845 302 1415. The lines are open from 8 in the morning til 8 in the evening, seven days a week except Christmas Day and Boxing Day, or
• find out more information on Tax Credits and benefits on the HMRC Website or on the DirectGov Website.