Discover whether you’re eligible to claim working tax credit, and how much you may receive in 2021-22
What is ‘working tax credit run on’?
You may receive a working tax credit run on if you stop work, get laid off, or your hours drop below the threshold to qualify.
‘Run on’ is where you continue to receive the tax credit payments for four weeks after the change.
If your hours increase, or you get a new job within this time, call the Tax Credit Office to let them know.
Is working tax credit backdated?
Tax credit can usually be backdated by up to a month. That’s why, if your circumstances change – for example, you start working fewer hours – it’s important to tell HMRC within a month of it happening. That way, if you’re eligible to get paid more, you won’t miss out.
If the change means you’ll get paid less, but you don’t tell HMRC, they’ll make you pay back any extra money you’ve been given, which could leave you out of pocket. So, again, it’s best to tell HMRC as quickly as possible.
Find out more: tax credits and change in circumstances
When is working tax credit paid?
You can choose to either get paid once a week, or once every four weeks. The option for when your payments are is on the claim form you fill out.
It can take up to five weeks to process a new claim, so you may have to wait a while. You’ll be sent an award notice in the post to tell you when your first payment will be made.
You might get paid slightly earlier whenever there’s a bank holiday, or some local holidays in Scotland. HMRC has a list of all early payments on its website.
Does working tax credit affect other benefits?
Tax credit can affect other benefits. If you claim tax credit, you might find that you get less:
- Housing Benefit
- Income Support
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Pension Credit.
However, claiming tax credit might mean you get extra help with certain costs, such as:
- prescriptions and other health-related costs
- if you’re pregnant or have a child under 4, you could get help towards the cost of vitamins, milk and food
- school-related costs, such as school meals, uniforms, transport and trips
- funeral costs
- court fees, legal costs and prison visits
- home repairs from your council
- the costs for heat and energy in your home.
Will I get working tax credit while I’m on maternity leave?
Yes, you can get working tax credit for periods when you don’t work, and that includes while you’re on maternity leave, off sick and are in-between jobs.
You can get working tax credit for the first 39 weeks of your maternity leave. To qualify you must have been in paid work and have worked the qualifying number of hours before you go on leave.