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Reduced working hours won’t affect tax credits payments

Paloma Kubiak
Written By:
Paloma Kubiak
Posted:
Updated:
04/05/2020

Tax credits recipients will continue to get payments even if they work fewer hours due to Covid-19.

The government has confirmed that people who are facing reduced working hours because of coronavirus will still receive their usual tax credits payments.

This also includes workers who have been furloughed and self-employed workers who have also experienced reduced hours.

HMRC confirms recipients don’t need to contact it about the change as it will use information already held about usual hours worked. It will treat customers as working their normal hours until the Coronavirus Job Retention Scheme and Self-Employment Income Support Scheme close, even if they are not using either scheme.

Customers can still report any other changes in income, childcare and hours in the normal way. However, they must tell HMRC if they or their partner lose their job, are made redundant or cease trading.

Customers can continue to claim Working Tax Credit and be treated as though they are working their normal hours, but they should check GOV.UK to see if additional or alternative support is available based on their personal and financial circumstances.