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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
, see all updates

How to check if the new total hours will increase or decrease the award

Step 1

You will need to consider whether the change to the weekly hours will increase or decrease the maximum tax credits award, before any income reduction is applied.

An increase occurs when

  • the customer is in a single claim and is responsible for at least one qualifying child or young person and the total weekly hours increase from below 16 hours to 16 hours or more and there is no other job that qualifies the customer for WTC
  • the customer is not responsible for any qualifying children and the total weekly hours a customer works increases from below 30 hours to 30 hours or more
  • the customer’s weekly hours increase from below 16 hours to 16 hours a week or more and that person qualifies for the disability element of Working Tax Credit, or
  • the customer’s weekly hours increase from below 16 hours to 16 hours a week or more and that person is aged 60 or over.

For couples with children

  • responsible for at least one qualifying child or young person and

If the claim was made before 6 April 2012

  • one person’s total weekly hours increase from below 16 hours to 16 hours or more
  • one persons weekly hours increase from below 16 hours to 16 hours a week or more and that person qualifies for the disability element of Working Tax Credit, or
  • one persons weekly hours increase from below 16 hours to 16 hours a week or more and that person is aged 60 or over.

If the claim was made on or after 6 April 2012

  • their hours increase from below 24 hours to 24 hours or more 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 persons weekly hours increase from below 16 hours a week to 16 hours a week or more 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 persons weekly hours increase from below 16 hours to 16 hours a week or more and that person qualifies for the disability element of Working Tax Credit, or
  • one persons weekly hours increase from below 16 hours to 16 hours a week or more and that person is aged 60 or over.

A decrease occurs when

  • the customer is in a single claim and is responsible for at least one qualifying child or young person and the total weekly hours decrease to below 16 hours and there is no other job that qualifies the customer for WTC
  • the customer is not responsible for any qualifying children and the total weekly hours a customer works decreases from 30 hours or more to less than 30 hours
  • the customer’s weekly hours decrease to below 16 hours a week and that person qualifies for the disability element of Working Tax Credit, or
  • the customer’s weekly hours decrease to below 16 hours a week and that person is aged 60 or over.

For couples with children

  • responsible for at least one qualifying child or young person and

If the claim was made before 6 April 2012

  • the total weekly hours decrease from 16 hours or more to below 16 hours
  • one persons weekly hours decrease to below 16 hours a week and that person qualifies for the disability element of Working Tax Credit, or
  • one person weekly hours decrease to below 16 hours a week and that person is aged 60 or over.

If the claim was made on or after 6 April 2012

  • the total the weekly hours decrease to below 24 hours a week between them or one persons hours decrease to less than 16 hours a week. If only one person works, that persons weekly hours will decrease to below 24 hours a week, or
  • one persons weekly hours decrease to below 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 persons weekly hours decrease to below 16 hours a week and that person qualifies for the disability element of Working Tax Credit, or
  • one persons weekly hours decrease to below 16 hours a week and that person is aged 60 or over.