Computing the working tax credit

Produced by a Tolley Personal Tax expert

Personal Tax

Guidance

This guidance note looks at the various elements of working tax credit and how an award is calculated. Note that tax credits cease on 5 April 2025. New claims for tax credits are no longer possible and no more payments will be made after 5 April 2025. Any existing claimants will be migrated to the universal credit system. See the Universal credit guidance note. There is information about migration notice letters on GOV.UK.

Entitlement to working tax credits

A claimant is entitled to make a claim for working tax credit (WTC) provided the claimant satisfies the conditions of being in qualifying remunerative work and is physically present and ordinarily resident in the UK. See the Entitlement to tax credits guidance note.

There are a number of special rules that apply to EEA citizens that come to the UK but, for the purposes of this guidance note, it is assumed that the tests for claiming WTC have been met.

For more on EEA citizens, see the GOV.UK website:

•
Benefits and pensions for EEA and Swiss citizens

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