Working Tax Credit and people who have recently stopped working

how to get working tax credit

Working Tax Credit is normally only payable to people who are in work and meet certain work hours rules. However, if you or your partner can't work because you're ill you may still be treated as working and be able to get Working Tax Credit. It will depend on what your usual working hours were before you went on sick leave and the length of time you're off work. You must have been entitled to Working Tax Credit prior to you being off sick and you must be deemed to be able to return to work in the future.

If you're off work for 28 weeks or less

You're an employee

If you're an employee, you'll be able to keep claiming Working Tax Credit for the first 28 weeks that you're off work, as long as:

  • your usual working hours are at least 16, 24 or 30 (depending on your circumstances)
  • you worked these hours immediately before going off work
  • you're paid a specific sickness or disability benefit

The specific sickness or disability benefits are:

  • Statutory Sick Pay
  • Employment and Support Allowance
  • National Insurance credits awarded because of incapacity for work, or limited capability for work (how your illness or disability affects the amount and type of work you can do)

You're self-employed

If you're doing self-employed work you'll be able to keep claiming Working Tax Credit for the first 28 weeks you're off work, as long as:

  • you were only doing self-employed work in the week immediately before your illness began
  • your usual working hours are at least 16, 24 or 30 (depending on your circumstances)
  • you worked these hours immediately before going off work
  • you receive one of the specific sickness or disability benefits above - or would have, but you don’t qualify because you're self-employed

If you're off work for more than 28 weeks

Your Working Tax Credit payments

could end if you don't go back to work after 28 weeks, even if you keep getting:

  • Income Support paid because of incapacity for work
  • Employment and Support Allowance
  • National Insurance credits on the grounds of incapacity for work, or limited capability for work (how your illness or disability affects the amount and type of work you can do)

If you don't go back to work after 28 weeks, you must tell the Tax Credit Office within one month. If you don't you may be charged a penalty. You can contact the Tax Credit Office by calling the Tax Credit Helpline.

You must also meet the rules in Working Tax Credit for number of hours worked per week. This will be based on the number of hours you used to work before you stopped work. For more information on the work hours rules see Working Tax Credit .

The calculator cannot look at your eligibility for out-of-work benefits and Working Tax Credit at the same time. As you are not currently working the calculator looks at your eligibility for out-of-work benefits. To find out whether you could get Working Tax Credit you should enter your details for your work hours when you were working. However, on the income section you should enter you current income.

In some circumstances you can be eligible for out-of-work benefits and Working Tax Credit. The rules determining how much help you will get are extremely complex and we would strongly advise you to get more detailed advice about the help that you are likely to receive. For individual advice please contact our helpline .

Note: If you’re not already claiming tax credits. you could make a claim for the first time if the above applies to you.

Contact details for the Tax Credit Helpline:

Telephone: 0345 300 3900, (Monday to Friday 8.00 am to 8.00 pm, and Saturday 8.00 am to 4.00 pm. Closed Christmas Day, Boxing Day and New Year's Day.)

Source: www.entitledto.co.uk

Category: Credit

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