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HMRC internal manual

Tax Credits Technical Manual

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HM Revenue & Customs
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Entitlement: WTC entitlement - qualifying remunerative work: normal conditions for being treated as being in qualifying remunerative work

The Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002, Reg. 4(1)

To be treated as being in qualifying remunerative work a person must satisfy all the following four conditions, and in the case of the second condition, one of the variations in that condition. (but see TCTM02420):

First condition

The person is an employed person or a self-employed person and;

  1. Is working at the date of claim

Or

  1. Have an offer of a job that has been accepted at the date of claim and the work is expected to start within 7 days of making the claim.

Note: if the claim falls within (b) above, condition 2, 3 and 4 below refer to work that the person will be undertaking.

For the purposes of this condition;

an “employed person” means a person who is engaged under a contract of service, a contract of apprenticeship or in the service of the Crown or in an office (including and elected office),

a “self-employed” person means a person engaged in carrying on a trade, profession or vocation on a commercial basis and with a view to the realisation of profits, either on one’s own account or as a member of a business partnership and the trade, profession or vocation is organised and regular. (see TCTM02415)

Second condition

First Variation: In the case of a single claim;

  1. A person must be aged at least 16 and working for not less than 16 hours a week if:
* there is a child or qualifying young person (as defined in Reg 2 of the Child Tax Credit Regulations 2002) for whom the person is responsible in accordance with the rules in regulation 3 of the CTC Regulations 2002,

Or

* the person satisfies the conditions of entitlement for the disability element of WTC i.e. has a disability which puts that person at a disadvantage in getting a job and satisfies the "qualifying benefit" test, 

Or

  1. The person satisfies the conditions for the 50 plus element of WTC and is working for not less than 16 hours a week. (Note: The 50+ element ceased 6t h April 2012)

Or

  1. A person must be aged at least 25 and working for not less than 30 hours per week.

Or

  1. A person must be aged at least 60 and working for not less than 16 hours a week

Second Variation: In the case of a joint claim where neither person is responsible for a child or qualifying young person, the person -

  1. Is aged at least 16 and undertakes work for not less than 16 hours per week and has a physical or mental disability which puts that person at a disadvantage in getting a job and satisfies Regulation 9(1)(c).
  2. Is aged at least 25 and undertakes work for not less than 30 hours per week.
  3. Is aged at least 60 and undertakes work for not less than 16 hours per week.

Third variation: In the case of a joint claim where at least one partner is responsible for a child or qualifying young person, the person -

  1. Is aged at least 16 and is a member of a couple where at least one partner undertakes work for not less than 16 hours per week and the aggregate number of hours for which the couple undertake work is not less than 24 hours per week;
  2. Is aged at least 16 and undertakes work for not less than 16 hours per week and has a physical or mental disability which puts that person at a disadvantage in getting a job and satisfies Regulation 9(1)(c);
  3. Is aged at least 16 and undertakes work for not less than 16 hours per week and that person’s partner is -
incapacitated and satisfies any of the circumstances in Regulation 13(4) to 8; or

an inpatient in hospital;

in prison (whether serving a custodial sentence or remanded in custody awaiting trail or sentence); 

entitled to carer’s allowance under section 70 of the Social Security Contributions and Benefits Act 1992(a); or
  1. Is aged at least 60 and undertakes work for not less than 16 hours per week.

Third condition

The work must be expected to last at least 4 weeks after making the claim or, if b. of the first condition applies, after the work starts.

Fourth condition

The work must be done for payment or in expectation of payment.

This means work for an employer in return for wages salary or some other measurable reward

Or

If the person is a self-employed earner, work carried out other than as an employed earner for a reward or profit.