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Changes to in-work tax credit from July 1

Changes to the in-work tax credit (IWTC), which removes the requirement for working families to work a minimum number of hours, come in to effect next month.

From 1 July, the IWTC will be available to eligible families who are not receiving an income-tested benefit or student allowance and have some income from paid work each week.

Currently sole parents must work a minimum of 20 hours per week, and couples a minimum of 30 hours per week between them, in order to be eligible for the IWTC payment.

The IWTC is a payment of up to $72.50 per week ($3,770 per year) to working families for the first three children and up to $15 extra a week for each additional child.

If a family is already receiving Working for Families payments and will be entitled to the IWTC from 1 July, they don’t need to do anything. Inland Revenue will pay the IWTC automatically and they’ll receive a notice in July showing how much they’ll get and when the payment will be made.

Families not currently receiving Working for Families payments, including the IWTC, can check eligibility and apply on our website or by calling us on 0800 227 773. 

Families already receiving IWTC payments don’t need to do anything other than keep their family income and circumstances up-to-date in order to keep receiving these payments. 

Visit more information about Working for Families and In-Work Tax Credit payments.