Working Tax Credit
UK tax glossary · Last reviewed: April 2026
Working Tax Credit (WTC) is paid to workers on low incomes who work a minimum number of hours per week. The amounts depend on hours worked, disability, age, and caring responsibilities. WTC is administered by HMRC and gradually being phased out as claimants are moved to Universal Credit.
New claims for WTC are not possible in most cases — HMRC directs new applicants to Universal Credit. However, existing claimants who have not yet migrated retain their WTC until they are moved over or their circumstances change significantly.
WTC is means-tested: it is withdrawn by 41p for every £1 of income above a threshold. It is calculated on an annual basis alongside Child Tax Credit if claimed jointly, and must be renewed each tax year.
Common questions
Can I still claim Working Tax Credit in 2026?
Generally no for new claims — HMRC now directs most applicants to Universal Credit. If you are an existing WTC recipient you may still receive it until you are migrated.
How does Working Tax Credit interact with wages?
WTC is reduced by 41p for every £1 of gross income above the income threshold. Higher earnings reduce or eliminate the credit. Report any changes in income to HMRC promptly to avoid overpayments.
Related resources
TaxHelper provides general information based on published HMRC rates and guidance. It is not regulated financial or tax advice. For decisions involving significant sums, complex circumstances, or if you are unsure, speak to a qualified accountant or HMRC directly.