Changes to your usual working hours and tax credits
You must work a minimum number of hours a week to get Working Tax Credit - either 16 or 30 depending on your circumstances. If your usual working hours change, you should let the Tax Credit Office know straight away because it may change the amount of Working Tax Credit you get.
To get Working Tax Credit, you must normally be over the age of 25 and work at least 30 hours a week. But you only need to work 16 hours or more a week if you or your partner:
You should expect your paid work to continue for at least four weeks.
You may need to tell the Tax Credit Office if your working hours go down. If you don’t, you may get paid too much money and may have to pay it back.
Let them know straight away if you or your partner:
What happens to your tax credits payments depends on whether your hours have gone down temporarily or until further notice.
Your hours have gone down temporarily
You can usually carry on getting your usual tax credits payments for four weeks from the date your hours dropped - as long as you expect your hours to go back to normal after four weeks.
Your hours have gone down until further notice or for good
You can carry on getting the same tax credits payments for four weeks from the date your hours go down. This can happen as long as all your other circumstances have stayed the same and one of the following applies to you:
After the four weeks is up, your tax credits may:
Let the Tax Credit Office know straight away if you:
If you stop work altogether, you will only be paid Working Tax Credit for a further four weeks from the date of the change.
You must report these changes within one month, or you could be paid too much money (an overpayment) which you may have to pay back. You may also be charged a penalty of up to £300.
Tell the Tax Credit Office if your usual hours of paid work go up because you might be able to get more money. Report the change in hours as soon as possible, because any increase in your payments can only be backdated by up to three months.
You should let the Tax Credit Office know if you:
The amount of tax credits you get depends on the amount of money you have coming in, so if increased hours also means an increase in income, then you should tell the Tax Credit Office straight away. It may not affect your current tax credits, but it will affect how much you should be paid for next year.
To claim tax credits, you need to tell the Tax Credit Office the total number of hours you usually work and are paid or expect to be paid for each week. If you’ve got more than one job you need to add together the total hours you usually work in each job.
You should include overtime hours if:
If your hours are different from week to week, tell the Tax Credit Office what you and your employer agree are your usual working hours.
You may not be able to report what your usual working hours are because they change so much from week to week. This may be because you:
If so, the Tax Credit Office may ask you to work out what your usual hours will be.
If you need more help you can call the Tax Credit Helpline on 0845 300 3900, or textphone 0845 300 3909 if you are deaf or have a hearing or speech impairment (open from 8.00 am to 8.00 pm every day except Christmas Day, Boxing Day and New Year's Day).
If you're calling from overseas you can also contact the Tax Credit Office on +44 289 053 8192.
Provided by HM Revenue and Customs