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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
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Eligibility - remunerative work (general): More than one employment (Info)

Note: On 6 April 2012, the Tax Credit eligibility rules changed. From this date couples with children are required to work at least 24 hours weekly. Hours worked by the customers can be added together, but one of the customers must be working at least 16 hours weekly to qualify for Working Tax Credit.

The condition of working for 16, 24, or 30 hours or more weekly, whichever is appropriate, is satisfied if a customer or at least one person in a joint claim

  • has two or more part-time jobs (including any self-employment)

and

  • the total hours worked is 24 or more weekly if they are in a couple responsible for a child

or

  • the total hours worked is 16 or more weekly if they

    • are in a couple responsible for a child and one partner does not work as they are incapacitated, in hospital, in prison or entitled to Carer’s Allowance
    • are single and responsible for a child
    • have a disability that puts them at a disadvantage in getting a job

or

  • if the customer is 25 to 59 and has no dependant children, the total hours worked by that person in all the jobs are at least 30 hours weekly

or

  • if the customer is aged 60 or over and does not have any dependant children, the total hours worked must be at least 16 in all other cases.

If both adults in a family have part-time jobs, at least one of them must meet the qualifying criteria for remunerative work. The hours cannot be added together to meet the qualifying remunerative work condition. They can, however, be added together once the remunerative work condition is met to qualify for the 30-hour premium.

Example 1: A customer works 20 hours in one job and 5 hours in another. The partner does not work as they are looking after their children. As both jobs relate to the customer, they can be added together. As the total hours they work are 25 hours, the remunerative work condition is satisfied.

Example 2: A customer and their partner each work 15 hours weekly. They have no dependent children. The total hours worked by the couple is 30 hours weekly. Although the total hours they work are 30, the remunerative work condition is not satisfied as neither person works individually for 30 hours, and the hours cannot be totalled as neither works 16 hours.

Example 3: A customer works 20 hours weekly and their partner works 10 hours weekly. The total hours worked by the couple are 30 hours weekly. They have responsibility for a child. As at least one of the couple works for 16 hours. The remunerative work condition is satisfied. As the remunerative work condition has now been satisfied, the hours they both work can be added together to consider the additional 30-hour element. The 30-hour element would be payable in this example.

If WTC entitlement ends due to employment changes - for example, total hours worked have dropped below 16 or employment ends, the customer may be entitled to Income Support, income-based Jobseeker’s Allowance or income-related Employment and Support Allowance. They will continue to receive Working Tax Credit for four weeks starting from the day after entitlement ended. This will be paid until further notice and the customer will receive a letter explaining this.

Note: Customers serving a prison sentence are not treated as being in remunerative work and so this would not apply to them.