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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
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Changes - work (general A-M): ESA/PC in payment customer no longer entitled to WTC

Reasons not to follow this guidance

You do not need to follow this guidance if

  • in the case of a joint claim 1 partner receives income-related Employment and Support Allowance (ESA) or Pension Credit (PC) and the other is working the 16 or more hours per week
  • the customer in receipt of ESA or PC is working less than 16 hours a week.

Note: From 6 April 2012, couples with children will be entitled to working tax credit if they are both aged 16 or over and

  • they work at least 24 hours a week between them, with one person working at least 16 hours a week. If only one person works, that person must be working at least 24 hours a week, or
  • one person works at least 16 hours a week and the other person can’t work because they are

    • incapacitated (in receipt of certain benefits because of a disability or ill health), or
    • an inpatient in hospital, or
    • in prison either on remand or serving a custodial sentence, or
  • one person works at least 16 hours a week and that person qualifies for the disability element of Working Tax Credit, or
  • one person works at least 16 hours a week and that person is aged 60 or over.

Checklist

Before you follow this guidance make sure you

  • follow the guidance in TCM0138020 
  • have the correct user roles to follow this guidance. Use the B&C Roles and Access Catalogue. You can find this by going to the Benefits & Credits homepage, selecting ‘R’ on the B&C A-Z index, selecting ‘Roles and Access Process’, selecting ‘Roles & Access Catalogue’ from the Related links menu
  • are in the correct MU. Use TCM0322460 for the correct MU number. Your manager will be able to tell you this.

Background

This guidance is for when a customer tells you that

  • they, are no longer receiving income-related Employment and Support Allowance (ESA) or Pension Credit (PC) and working the 16 or more hours per week
  • their partner is no longer receiving ESA or PC and working the 16 or more hours per week.

Note: From 6 April 2012, couples with children will be entitled to working tax credit if they are both aged 16 or over and

  • they work at least 24 hours a week between them, with one person working at least 16 hours a week. If only one person works, that person must be working at least 24 hours a week, or
  • one person works at least 16 hours a week and the other person can’t work because they are

    • incapacitated (in receipt of certain benefits because of a disability or ill health), or
    • an inpatient in hospital, or
    • in prison either on remand or serving a custodial sentence, or
  • one person works at least 16 hours a week and that person qualifies for the disability element of Working Tax Credit, or
  • one person works at least 16 hours a week and that person is aged 60 or over.

Guidance

Note: when sending customer, staff or process data to another individual or team, make sure you follow the latest data security guidelines or contact the Data Guardian/Data Security Team for advice.

Step 1

If notification is received advising

  • income-related Employment and Support Allowance (ESA) or Pension Credit (PC) has ended for a tax credits customer who is also receiving Working Tax Credit (WTC)
  • a tax credits customer receiving income-related ESA or PC and WTC and is no longer entitled to WTC.

Follow the guidance in TCM0284080.