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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: Ceasing to undertake work or working for less than 16, 24 or 30 hours per week

The Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002, Reg 7D

From 6 April 2007, a person who has been undertaking qualifying remunerative work for not less than 16 hours a week or not less than 30 hours a week who stops working, or starts to work less than 16 hours a week, will continue to be treated as being engaged in qualifying remunerative work for the four weeks immediately after they ceased working or started to work less than 16 hours a week.

From 31 July 2009, a person who has been undertaking qualifying remunerative for not less than 30 hours a week and who loses entitlement to WTC because they have reduced their hours to less than 30 hours a week will also continue to be treated as being engaged in qualifying remunerative work for the four weeks immediately after they reduced their hours to less than 30 a week. They will receive all elements of WTC during this period, including the childcare element where appropriate.

Where one member of a couple, both of whom are engaged in qualifying remunerative work and are entitled to the childcare element of WTC, ceases work or reduces their hours to below 16 a week, the four week continuation will apply to all elements of WTC which the couple will lose, even though there is no loss of entitlement to the basic element of WTC. To get this four week “run-on”, the claimant must have been engaged in qualifying remunerative work immediately before they ceased work/began to work less than 16 hours a week.

From April 2012, a person who is a member of a couple, and are responsible for a child or qualifying young person, cease to work or reduce their hours to the extent that they cease to meet the condition that one member of the couple works not less than 16 hours a week and the aggregate number of hours for which the couple are engaged in qualifying remunerative work is not less than 24 hours per week, they will continue to be treated as being engaged in qualifying remunerative work for the 4 weeks immediately after the change.