The UK Working Tax Credit is set to end on 5 April 2025. No further payments will be made after this date. If you are eligible, you will receive a letter informing you whether you should apply for Universal Credit or Pension Credit instead. This article provides comprehensive details on eligibility, work hour requirements, payment amounts, and the transition to Universal Credit.
UK Working Tax Credit 2025
| Feature | Details |
|---|---|
| End Date | 5 April 2025 |
| Replacement Options | Universal Credit, Pension Credit |
| Eligibility Criteria | Based on work hours, disability status, childcare needs |
| Payment Method | Bank transfer, weekly or every four weeks |
| Maximum Amount | Varies based on circumstances (up to £3,935/year for disabilities) |
| Official Site | GOV.UK – Tax Credits |
Who Can Claim UK Working Tax Credit in 2025?
You can only claim Working Tax Credit if you are already receiving Child Tax Credit. If you do not meet this condition, you will need to apply for Universal Credit instead.
For individuals or couples above the state pension age, Pension Credit may be an alternative option.
Work Hours Requirement
To qualify, you must meet the following work-hour requirements:
| Circumstance | Minimum Weekly Work Hours |
| Aged 25-59 | At least 30 hours |
| Aged 60 or over | At least 16 hours |
| Disabled | At least 16 hours |
| Single with one or more children | At least 16 hours |
| Couple with one or more children | At least 24 hours combined (one must work at least 16 hours) |
A child is considered under 16 years old or under 20 years old if in approved education or training.
Exceptions for Couples with Children
You may still qualify if you and your partner work less than 24 hours per week combined, provided one of you works at least 16 hours per week and one of the following conditions applies:
- You are disabled.
- You are 60 years or older.
- Your partner is incapacitated (receiving disability-related benefits).
- Your partner receives Carer’s Allowance (or Carer Support Payment in Scotland).
- Your partner is hospitalized or in prison.
What Qualifies as Work?
Work can be in the form of:
- Employment (working for someone as an employee or worker).
- Self-employment.
- A mix of both.
Self-Employment Eligibility
To qualify under self-employment, your work must:
- Aim to generate profit.
- Be commercial, regular, and organized.
- Follow industry regulations (e.g., licenses, insurance, business records).
- Generate an average hourly profit equal to or above the National Minimum Wage.
You may not qualify if you:
- Do not have a clear plan for making a profit.
- Do not work regularly.
- Do not maintain business records such as receipts and invoices.
Payment Amounts
The amount you receive depends on your circumstances. The following table outlines the maximum potential payments:
| Circumstance | Maximum Annual Amount |
| Couple applying together | Up to £2,500 |
| Single parent | Up to £2,500 |
| Working 30+ hours per week | Up to £1,015 |
| Disabled | Up to £3,935 |
| Severe disability (additional) | Up to £1,705 |
| Childcare support | Up to £122.50 per week (1 child) or £210 per week (2+ children) |
How Payments Are Made
- Payments are made directly to your bank or building society account.
- You can choose between weekly or four-weekly payments.
- If you are in a couple, you must use a single bank account.
- Payments typically continue until the end of the tax year (5 April).
Transition to Universal Credit
If you are already receiving Working Tax Credit, how and when you transition to Universal Credit depends on whether your circumstances change.
What Happens If Your Circumstances Change?
You must inform HMRC within 30 days of any significant changes, including:
- Losing a job.
- Having a child.
- Working fewer than 16 hours per week.
If any of these apply, you may be required to apply for Universal Credit, and HMRC will inform you of the next steps.
Frequently Asked Questions (FAQs)
1. When will Working Tax Credit end?
Working Tax Credit will end on 5 April 2025. No further payments will be made after this date.
2. What if I am already receiving Working Tax Credit?
If you are already receiving Working Tax Credit, you may be moved to Universal Credit depending on any changes in your circumstances.
3. Can I apply for Working Tax Credit now?
No, you can only claim Working Tax Credit if you are already receiving Child Tax Credit.
4. What if I don’t qualify for Working Tax Credit?
You may be eligible for Universal Credit or Pension Credit, depending on your circumstances.
5. How do I check if I qualify for Universal Credit?
You can check your eligibility and apply through the official GOV.UK website.
UK Working Tax Credit will end on 5 April 2025. If you are currently claiming it, you will need to transition to Universal Credit or Pension Credit if eligible. To continue receiving support, ensure that you meet the work-hour requirements and keep HMRC updated on any changes in your circumstances.
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