The Working Tax Credit is a benefit that helps UK workers who earn a low wage, it is similar to the Earned Income Credit in the United States in that regard. This gives employees help via monthly payments from the UK HM Revenue & Customs department. For most single employees in typical situations, this consists of a monthly payment of £163 33p (£1,960 yearly).

The amount of the benefit varies dependent on household situations such as: being single or applying as a couple, single parenthood, disabilities, childcare, having children, etc. On the high side, an applicant who is disabled can receive monthly payments of up to £257 50p (£3,090 yearly). Applicants with children also have higher benefit payouts of £210 a week with 2 or more children and £122 50p weekly with one child. An applicant can be denied these benefits if they make too much money or if they’re self-employed in some situations.

Applicants must work at least 30 hours a week to qualify for the WTC and file a claim with the HM R&C. This hour threshold is lowered to 16 hours if an applicant is aged 60 or over, Pension Credit is also available if the applicant doesn’t qualify for it and is of Pension age. If the applicant is disabled, the threshold is also 16 hours a week of employment to qualify. If an applicant is single with a child, the threshold for that situation is also 16 hours of work a week. This number also holds true for a couple with children, with one of the two working 16 hours a week and the other applicant 8 hours a week. Under UK law, a child is considered someone who is under the age of 16 or under 20 if they’re in training or approved educational courses. For those applicants who don’t fall under the Working Tax Credit, they can apply for Universal Credit which is similar to the WTC and is paid out monthly.

This Credit can help those who need it and should be investigated to see if it will help those who find themselves in need. Filing a WTC claim is a simple process which involves contacting the HR Revenue & Customs office to make a claim. Usually it can take up to five weeks for the HR R&C to process the claim. For those who need to talk to an agent, call the Working Tax Credit helpline phone at 0345 300 3900.