How Much Working Tax Credit Can I Claim If I Work For 24 Hours A Week?

While most people are aware that they need to work at least 16 hours every week to claim Working Tax Credits, the purpose of this article is to answer the question of how much Working Tax Credits can someone claim if they work 24 hours a week. For a detailed understanding of this situation, we will also explore how working hours are calculated for Working Tax Credit calculation and if the claimants’ age affects the minimum working hour threshold or not.

How Much Working Tax Credit Can I Claim If I Work For 24 Hours A Week?

If you work 24 hours a week, you will be able to claim the basic rate of £2,070 with additional top-ups per year as your Working Tax Credit claim. However, you should also be able to meet one of the below-listed criteria:

• be aged 60 years or over
• be disabled
• be single with 1 or more children
• be part of a Couple with 1 or more children

Based on this classification and your circumstances, the amount that you can expect to receive through WTC is categorised below:

• If you are part of a couple you can get up to £2,125 a year
• If you are a single parent you can get up to £2,125 a year
• If you are working at least 30 hours a week you can get up to £860 a year
• If you are an individual with a disability you can get up to £3,345 a year
• If you are an individual with a severe disability you can get up to £1,445 a year on top of the disability payment
• If you are an individual who pays for approved child care you can get up to £122.50 for 1 child or £210 for 2 or more children a week

This indicates that the amount that one can claim in the Working Tax Credit primarily depends on the claimant’s circumstances and income.

In addition to this, a claimant should be able to meet the below eligibility criteria:

• must be in paid work for at least 4 weeks 
• should be working a certain number of hours; according to your age
• must be claiming Child Tax Credits

However, now that Universal Credit is replacing the six legacy benefits including Working Tax Credit, you will not be able to apply for a fresh claim and would rather need to claim Universal Credit instead.

If you intend to apply for a new claim for Working Tax Credits, you will have to use a postcode checker to see if the benefit has already been replaced with Universal Credit in your area. In this case, you will have to sign in to your Universal Credit account or create a new account if you don’t have one already. 

Payments can either be made on a weekly or monthly basis and will be deposited by the DWP directly into your bank, building society or credit union account.

How Do I Calculate Working Hours For Working Tax Credit Claims?

How you calculate working hours for your Working Tax Credit claim depends on whether you are a full-time or part-time employee, self-employed or a term-time worker. Below are some details for your guidance:

• if you are employed, you can include overtime but not unpaid breaks
• if you are self-employed you should include all the time you spend on your business
• if you are a seasonal worker, you should include the hours you are currently working 
• if you work regular term-time, you should add the hours you work during term time
• if you are an agency worker, you should agree on your normal hours with your employer
• if you are an on-call worker, you can only include the hours that you are called to work
• if you are on standby, you cannot include the time when you’re not paid

Being a part-time or full-time worker, you can simply take into account your average working hours per week from your official records.

If you are self-employed: when working out your weekly hours, HMRC says you can include not only the hours charged to your client/customer but also time spent on other ‘business’ tasks e.g. trips to wholesalers, book-keeping, advertising, travel. All hours worked must be for payment or in expectation of payment. 

If you are a term-time worker, your WTC claim should be based on the hours you work during term-time. Payment continues over the school holidays. However, if you are a seasonal worker (and only work a few months each year), you may not be entitled to WTC for the periods you do not work.

If there are any changes to your working hours, you should inform the HMRC so that your tax credits are calculated accordingly.

Does My Age Affect My Working Hours For Working Tax Credit Claims? 

Yes, your age affects the number of hours you are expected to work so you may be eligible for Working Tax Credit. Below is a classification of the expected working hours based on your age:

• if you are aged between 25 to 59 years, you should be working at least 30 hours per week
• if you are aged 60 years or above, you should be working at least 16 hours per week
• if you are disabled, you should be working at least 16 hours per week
• if you are single and responsible for a child, you should be working at least 16 hours per week
• if you are part of a couple and are responsible for a child, there should be at least 24 working hours between you, with one of you working at least 16 hours per week

In addition to your age and working hours, there are other factors such as your income, the addition of a family member, increased living costs or your ability to claim other benefits that can also affect your Working Tax Credit claim.

Conclusion:

The above discussion helps to conclude that while one may be able to claim the basic rate of £2,070 by working 24 hours a week, there can be added elements to this amount based on one’s circumstances. In addition to this, claimants should be conscious of the fact that the number of hours that they work is in accordance with the criteria set for their age bracket.

References:

Working Tax Credit: Eligibility – GOV.UK

Working Tax Credit: What you’ll get – GOV.UK

Check if you can get Working Tax Credits – Citizens Advice