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HMRC internal manual

Claimant Compliance Manual

Overview: Working Tax Credit Payments and Elements

The Working Tax Credit is intended to tackle persistent in-work poverty and to make work pay more than welfare, by targeting extra financial help to low income individuals and couples. Payment is always made to the person in work, so it is not possible for couples to opt for payment to a non-working partner. As well as a basic element payable at different rates for individuals and families, it includes a number of extra elements for:

  • working full time (defined as at least 30 hours per week)
  • being a worker with a disability
  • being a lone parent
  • having eligible child care costs (paid through the Child care element).

Example 2:

John has a mental disability, which puts him at a disadvantage in getting a job, but works 17 hours a week for a low wage.

He is entitled to:

  • Working Tax Credit - at an enhanced rate because his disability puts him at a disadvantage in getting a job.