What is Working Tax Credit?

Full Definition

Working Tax Credit was a means-tested benefit, introduced in 2003, that topped up the income of people in low-paid work, including those without children, provided they worked a minimum number of hours per week and met other eligibility conditions, with the amount awarded tapering down as household income rose. It was one of two legacy "tax credits" (alongside Child Tax Credit) gradually phased out as part of the rollout of Universal Credit, which combined support for low income, children, housing costs, and limited capability for work into a single monthly payment; by the government's "managed migration" deadline, existing tax credit claimants had all been moved onto Universal Credit or another appropriate benefit, and Working Tax Credit is no longer available to new claimants or paid to anyone. Anyone who thinks they may still be owed a historic tax credit payment, is dealing with a tax credit overpayment from before the move to Universal Credit, or needs to understand transitional protection amounts carried over into their Universal Credit award, should check current guidance on gov.uk or contact the relevant department directly, since the fine detail of transitional arrangements can vary by individual circumstances and is not covered by a single simple rule.

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