Good News! Tax Credits Safe Despite Fewer Hours at Work
The government has confirmed: if coronavirus forces you to cut back your hours or get furloughed, your tax credits won’t take a hit. You’ll keep receiving your usual payments as long as you’re still employed or self-employed.
No Need to Contact HMRC
If your hours have dropped due to COVID-19, don’t bother ringing HMRC. They’ll automatically treat you as working your normal hours until the Job Retention Scheme and the Self-Employment Income Support Scheme end—whether you’re using these schemes or not.
This is based on the hours they already know you normally work. So, unlike usual, reduced hours won’t slash your tax credits during the pandemic.
Keep Reporting Other Changes
While reduced hours won’t affect your tax credits, you must still report other changes like income shifts, childcare arrangements, or hours worked.
And crucially, you need to inform HMRC if you or your partner lose your job, get made redundant, or stop trading.
Check for Extra Help
You can keep claiming Working Tax Credit as if you’re on your usual hours. But it’s worth checking GOV.UK to see if you qualify for additional or alternative support depending on your financial situation.
