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Posted Tue, 14 Nov 2023 17:22:41 GMT by
Hi there, my manager wants to reduce my hours per week to 15 hrs per week for 6 weeks. Could you please tell me how this will effect my tax credit award? Thank you
Posted Tue, 21 Nov 2023 10:57:36 GMT by HMRC Admin 21 Response
Hi
To qualify for working tax credit you must be working at least 16 hours per week. A reduction in hours to 15 would end entitlement to Working Tax Credit. If you are claiming for a child or children eligibility to Child Tax Credit will continue, however if you are claiming Working Tax Credit only your tax credit claim will end and you will need to claim Universal Credit.
Thank you.
Posted Tue, 21 Nov 2023 11:30:36 GMT by
I have got two children, so I do get Child Tax Credit. Would I still need to end my tax credit claim if my hours decrease? Or in this case I can continue? Also would my Child Tax Credit go up if I stop receiving Working Tax Credit because of the reduction in working hours to less than 16 hrs per week?
Posted Thu, 23 Nov 2023 08:43:57 GMT by HMRC Admin 20 Response
Hi kolett80,
You will need to report the change as soon as it happens.
You will still receive the elements of child tax credit while entitlement exists but will no longer receive the working tax credit elements.
It is likely that the award will reduce.
If the hours are increased at a later date, then you should notify HMRC so that the award can be amended to reflect the change.
Thank you.

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