This benefit can be worth thousands each year but, unlike other benefits, must be renewed each year and can go up or down or stop altogether depending on your circumstances.
There are two types of Tax Credits:
- Child Tax Credit: for people with children, whether working or not. Eligibility depends on how many children you have and the number of hours you work.
- Working Tax Credit: for people who work but are on low income.
It's important to note that most people can no longer apply for Tax Credits. If you need support with your income and you are claiming for the first time or submitting a new claim after a period without Tax Credits, you will need to apply for Universal Credit.
If you are still receiving Tax Credits, you can continue to get them until your circumstances change or you're asked to move onto Universal Credit as part of 'Managed Migration', whichever happens first.
The amount you get depends on a number of factors including:
- Your income
- Whether you're single or in a couple. (Couples need to make joint claims based on household income.)
- When your children were born
- Your working hours
- Whether you've a disability.
Renewing Tax Credits
If you get tax credits, you should receive an annual renewal pack, which are usually sent out between April and June. Some just need checking, others require signing and sending back before the listed deadline (31 July).
If you don't receive your renewal pack by the end of June, it's recommended you call the Tax Credits helpline on 0345 300 3900. Don't ignore renewal notices - it could mean your payments stop and you could be asked to repay the money paid since April of that year. Remember to always check the figures on the renewal notice, even if you don't want to claim anymore.
You can find more information on renewing tax credits here.
Migration Notices
The UK Government is currently in the process of transferring people who currently claim a range of different benefits onto Universal Credit. Tax credits are included in this change - letters are being sent out to those who claim Working Tax Credits and Child Tax Credits to start the process. These letters are called 'Migration Notices'.
Please do not ignore these letters - you must make a claim for Universal Credit (UC) before the deadline set in this letter (this will be three months from when the letter is sent) or your benefits will stop. You cannot choose to stay on Tax Credits.
Please note that the benefit(s) mentioned in the letter will end by the deadline given in the Migration Notice even if you do not apply for Universal Credit. Please be aware that tax credit renewals issued for 2024/25 may have predicted payments for next tax year (2025/26); however, these are automatically generated and should be ignored.
If you have received a Migration Notice and would like advice or support, we can help. Please get in touch with your housing officer on 0141 560 6000 if you have any questions.