Computing the working tax credit

Produced by a Tolley Personal Tax expert

Personal Tax

Guidance

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This guidance note looks at the various elements of working tax credit and how an award is calculated.

Migration of tax credits to universal credit

New claims for tax credits are no longer possible as they have been replaced by the universal credit for all claimants. Existing claimants will continue to receive tax credits until they are migrated to the universal credit system. Migration will take place when a change in circumstances is reported or when a migration notice letter is received. This is expected to be completed in 2024. There is information about migration notice letters on GOV.UK.

See the Universal credit guidance note.

New claims to working tax credit (WTC) cannot be made, but WTC may be added to an existing child tax credit (CTC) claim (see ‘Working Tax Credit’ 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

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