Step 1 increasing your income

Working Tax Credit

Extra advice:

Universal Credit and being self-employed

If you are self-employed and claim Universal Credit (when you previously would have claimed Working Tax Credit), the Department of Work and Pensions (DWP) will assume you earn a minimum amount from your business. This amount depends on your circumstances and will affect the amount of benefit you can claim. You will also be expected to give the DWP details of your business income and outgoings each month. If you are not sure how this will affect you, contact us for advice.

Working Tax Credit is paid to people who are in work but are on a low income, unless they are being paid Universal Credit instead. It is paid on top of your wages or drawings from your business, and is dealt with by Her Majesty’s Revenue & Customs (HMRC). You can claim whether you have children or not, but the hours you must work to be eligible will depend on your circumstances and age. For information, ring the Tax Credit Helpline on 0345 300 3900.