Working Tax Credit (WTC) is a state benefit in the United Kingdom made to people who work and receive a low income. It was introduced in April 2003 and is a means-tested benefit. Despite the name, tax credits are not to be confused with tax credits linked to a person's tax bill, because they are used to top-up low wages. Unlike most other benefits, it is paid by HM Revenue and Customs (HMRC).
WTC can be claimed by working individuals, childless couples and working families with dependent children. In addition, people may also be entitled to Child Tax Credit (CTC) if they are responsible for any children. WTC and CTC are assessed jointly and families remain eligible for CTC even if where no adult is working or they have too much income to receive WTC.
In 2010, the coalition government announced that the Working Tax Credit would, by 2017, be integrated into and replaced by Universal Credit. However, implementation of this has been repeatedly delayed and will not be finished until 2024 at the earliest.[1] Since 2018, no new claims can be made for Working Tax Credit, they must be made for Universal Credit.[2]