The Working Tax Credit (WTC) is a payment to people in work to top up their wages. It is slightly different from a benefit as it is administered by HM Revenue and Customs (formerly Inland Revenue) and not by the DWP. It is means tested but is not based on your current income but on your income from the previous tax year. It does not affect the amount of tax you pay, but if you qualify you will get a set amount of money each week or month from the government in addition to your salary.

The amount of WTC that you get depends on your circumstances and your income. The amount is made up of various elements, depending on whether you:

• are single
• in a couple
• have dependent children
• are a lone parent
• are over 50
• are disabled or severely disabled.
• work more than 30 hours per week

You will qualify for the disability element if you have been getting a qualifying disability benefit for at least six months prior to making a claim for WTC or you are currently getting DLA. If you are a disabled person you can only get WTC if you work more than 16 hours per week. 

If you require childcare because you are working or returning to work, WTC can pay 70% of any approved relevant childcare costs in addition to your WTC.

Please note if you are under 25 you will not normally be eligible for WTC unless you are responsible for dependent children or are disabled. If you are over 25 and not in these categories you will only qualify for WTC if you work over 30 hours per week.