Working Tax Credit (WTC)
What it is
The Working Tax Credit (WTC) is a UK state benefit that provides financial support to people who work and have low incomes. It is a means‑tested payment: entitlement and the amount paid depend on an applicant’s individual circumstances.
Key points
- WTC is for low‑income workers in the UK.
- To claim WTC you must already be receiving Child Tax Credit.
- Eligible applicants are normally aged 25 or over, or any age if they have a qualifying disability.
- Claimants must meet minimum weekly working‑hour requirements set according to age.
- Payments are made weekly or every four weeks into a bank or building society account.
Who qualifies
To receive WTC you must meet several conditions:
* Be in paid work — this can be employment, self‑employment, or a mixture of both.
Work at least the minimum number of hours required for your age or circumstances (exact hours are determined by the rules for each claimant group).
If self‑employed, the work must be commercial, regular, organized and undertaken with a view to making a profit.
* Already be receiving Child Tax Credit.
Explore More Resources
How payments work
- The WTC base rate can be around £2,280 a year, with additional amounts added or reduced depending on personal circumstances and entitlements.
- Payments are made directly into the claimant’s bank or building society account, either weekly or every four weeks.
- Entitlement is normally paid from the date of the first claim until the end of the tax year for which it applies.
Income and means testing
WTC is means‑tested, so the amount you receive depends on your circumstances. There is no single fixed income cutoff that automatically rules you out; rather, eligibility and payment levels are determined case by case under the benefit’s rules.
If you don’t qualify
If you are not eligible for WTC, Universal Credit is the UK benefit that has been introduced to replace several existing credits and may be the alternative route for support.
Explore More Resources
Bottom line
Working Tax Credit supports low‑income workers in the UK who meet age, hours and claim conditions and who already receive Child Tax Credit. Payment amounts and eligibility depend on individual circumstances; those who do not qualify should consider Universal Credit.