Tax Credits

What are Tax Credits?

Tax Credits are made up of Child Tax Credits and Working Tax Credits.

Child Tax Credits are to help pay for the costs of children
Working Tax Credits are to help top up wages

Tax Credits are means tested so take into account your income. They are administered by HM Revenue and Customs.

There is no capital limit for Tax Credits.

Universal Credit is replacing most new claims for working age means-tested benefits, including Tax Credits, but some people still receive them.

Am I eligible for Tax Credits?

Child Tax Credits

To be eligible for Child Tax Credits you must:

be responsible for a child or a qualifying young person
satisfy the income means test

Working Tax Credits

To be eligible for Child Tax Credits you must:

be in paid work
work enough hours, which vary depending on your circumstances
satisfy the income means test

How much Tax Credit might I receive?

The current Tax Credit rates can be found at Citizens Advice webpages on Tax Credits. The amount you get depends on many things including how much income you have, your age, the hours you work and if there are child disability benefits.

You can also Check your entitlement to benefits online on the Gov.UK.

Benefit cap

Your benefit(s) may be limited by the Benefit cap.

How to claim Tax Credits

It is not normally possible to make a new claim for Tax Credits. Instead you would have to make a claim for Universal Credit. However if you are already on Working Tax Credits and you have a child, you can then ask for Child Tax Credits for your new child. It is not a new claim, just a change to your existing Tax Credits. The same is true if you are already on Child Tax Credits and you start working the required hours, you can then ask for Working Tax Credits to be included in your Tax Credits. More details about this are on the City Council’s more detailed Universal Credit webpage.

Tax Credits are administered and paid by the Tax Credits office of HM Revenue and Customs. See manage your Tax Credits on gov.uk

Where can I get benefits advice?

You can get benefits advice from a local independent service. They can help guide you through the application process and explain how some benefits may impact upon another:

Citizens Advice Newcastle give advice to anyone in Newcastle
Newcastle Welfare Rights Service give advice to people in priority groups. They have self help material on their website.
Find more about benefit advice services available across Newcastle.
Turn2us helps people in financial need gain access to welfare benefits, charitable grants and other financial help – online, by phone and face to face through partner organisations.