Benefits, Coronavirus

I’m a furloughed worker, how will this affect my working tax credits?

If you are off work or on reduced hours and claim tax credits HMRC has told claimants not to update working hours if working less due to the coronavirus. They are treating this as a temporary exceptional change and Working Tax Credit (WTC) will not go down because you are working less.

The government has said that you will remain employed while furloughed. Entitlement to WTC only ends if you have ‘ceased work’ so it is expected that you will remain entitled to WTC if you are a ‘furloughed’ worker.

See also: COVID-19: guidance for employees, employers and businesses

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