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There are two types of tax credits: working tax credit and child tax credit. Only one claim can be made per household, but the household may receive both types of tax credits depending on the circumstances. To be entitled to working tax credits, the claimant must be employed or self-employed and work a minimum number of hours a week. To be entitled to child tax credit, the claimant must be responsible for a child or qualifying young person. Tax credits work by calculating the maximum award based on the household's circumstances and then reducing it based on the household's income. For every £1 of income over the tax credit income thresholds, entitlement is reduced by £0.41. The amount awarded for a tax year is based on the household's income for the previous tax year. This is finalised after the end of the tax year when the actual income is determined. No new claims for tax credits can be made; the person must claim universal credit instead.