Sunday, October 17

Get tax credits or Tax-Free Childcare? You need to tell HMRC if your circumstances have changed post-Covid-19

Just over 1.4 million people receive tax credits. If you’re no longer eligible to receive tax credits, other sources of Government help are available and you may be able to apply for Universal Credit instead. See our Universal Credit guide for the full breakdown. You might also be able to apply for Pension Credit if you and your partner are state pension age or over.

Don’t worry if you’re no longer eligible for WTC, you will remain entitled to Child Tax Credit if you already receive it and have not yet made a claim for Universal Credit.

Get Tax-Free Childcare? You need to prove you’re earning at least £142/wk

Similarly, in pre-Covid times you needed to earn an average of £142/wk to claim up to £2,000/yr per child towards childcare costs. During the crisis, the rules were temporarily relaxed to enable those whose earnings dropped below £142 /week because of Covid-19 to still claim the benefit.

But now, when you next confirm your eligibility for tax-free childcare, which you need to do every three months, you’ll need to prove you’re earning at least £142/week. See our Tax-Free Childcare guide for a full breakdown of how this benefit works.

If the removal of the temporary rules means you’re no longer eligible for Tax-Free Childcare, you might be able to claim back up to 85% of your childcare costs through Universal Credit instead.

The £20/week uplift to Universal Credit is ending

Last year, the Government increased the Universal Credit standard allowance by £20/wk in response to the coronavirus pandemic – from £317.82/wk to £409.89/wk for a single person aged 25 or over.

This uplift ends on 6 October. You may be entitled to extra payments or other support, so it is worth visiting our Coronavirus Universal Credit and Benefits guide to find out more.

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