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In 2026, you cannot make a new claim for Working Tax Credit or Child Tax Credit, no matter how much you earn, because tax credits ended on 5 April 2025. The old question of “how much can you earn and still get tax credits?” now mainly applies to people checking a past award, finalising an old tax credit claim, dealing with an overpayment, or comparing tax credits with Universal Credit.
Previously, there was no single fixed income limit for tax credits. The amount a household could earn and still qualify depended on its circumstances, including whether the person was single or in a couple, whether they had children, whether anyone had a disability, how many hours they worked, and whether they paid for approved childcare.
For current support, most working-age people should now look at Universal Credit on GOV.UK. People over State Pension age may need to check Pension Credit instead.
Last updated: July 2026
What Were Tax Credits?
Tax credits were UK government payments administered by HM Revenue and Customs. They were designed to support people on low or moderate incomes, especially working households, families with children, disabled workers and people paying for approved childcare.
There were two main types:
| Type of tax credit | What it was for | Status in 2026 |
|---|---|---|
| Working Tax Credit | Support for people working a certain number of hours on a low income | Ended on 5 April 2025 |
| Child Tax Credit | Support for people responsible for children or qualifying young people | Ended on 5 April 2025 |
The official GOV.UK tax credits guidance now states that tax credits have ended and that people cannot make new claims for Child Tax Credit or Working Tax Credit.
Can You Make a New Tax Credits Claim in 2026?
No. New claims for Working Tax Credit and Child Tax Credit are no longer available. This is the most important update for readers searching old tax credit information.
If someone is looking for income support in 2026, the likely replacement depends on their circumstances:
- Working-age people on a low income may need to check Universal Credit.
- People who are State Pension age may need to check Pension Credit.
- People who recently stopped working or reduced their hours may also want to read The Business View guide on claiming Jobseeker’s Allowance with savings.
- People struggling with local bills may also qualify for help such as Council Tax Reduction, depending on their council’s rules.
So, How Much Could You Earn and Still Get Tax Credits Before They Ended?
Before tax credits ended, there was no universal earnings limit. A person earning one amount might qualify, while another person earning the same amount might not, because tax credits were calculated using household circumstances.
The calculation usually considered:
- annual household income;
- whether the claim was single or joint;
- number of dependent children;
- working hours;
- approved childcare costs;
- disability or severe disability elements;
- whether the claim included Working Tax Credit, Child Tax Credit, or both;
- changes in income compared with the previous tax year.
For the final full tax credit year, 2024/25, the main income threshold for tax credits was £7,955 and the withdrawal rate was 41%. This meant tax credits were reduced as income rose above the threshold. For Child Tax Credit-only claims, a different threshold of £19,995 applied. These figures are historical and should not be used as current entitlement rules.
Historic 2024/25 Tax Credit Income Rules
| Tax credit rule | Historical 2024/25 amount or rate | What it meant |
|---|---|---|
| Main income threshold | £7,955 per year | Income above this could reduce the award |
| Withdrawal rate | 41% | Tax credits were reduced by 41p for each £1 of income above the relevant threshold |
| Child Tax Credit-only threshold | £19,995 per year | Applied where the claim was for Child Tax Credit only |
| Income rise disregard | £2,500 | Some income increases were ignored up to this amount when comparing tax years |
| Income fall disregard | £2,500 | Some income decreases were also treated under a disregard rule |
Old articles sometimes suggested simple limits such as £13,000, £18,000 or £35,000. Those figures can be misleading because tax credits did not work as one fixed national earnings cap. A household with children, childcare costs or disability elements could sometimes qualify at a higher income than a single person with no children or extra elements.
Historic Working Tax Credit Rates Before Tax Credits Ended
The following figures show the maximum annual Working Tax Credit elements for 2024/25. They are included for readers checking old awards, final notices or overpayment calculations.
| Working Tax Credit element | Historical 2024/25 maximum annual amount |
|---|---|
| Basic element | £2,435 |
| Couple and lone parent element | £2,500 |
| 30-hour element | £1,015 |
| Disabled worker element | £3,935 |
| Severe disability element | £1,705 |
People who paid for approved childcare could also receive help through the childcare element of Working Tax Credit. In 2024/25, the maximum eligible childcare cost was £175 per week for one child or £300 per week for two or more children, with up to 70% of eligible costs covered.
Historic Child Tax Credit Rates Before Tax Credits Ended
Child Tax Credit was for people responsible for a child or qualifying young person. The amount depended on the number of eligible children and whether disability elements applied.
| Child Tax Credit element | Historical 2024/25 maximum annual amount |
|---|---|
| Family element | £545 |
| Child element | £3,455 |
| Disabled child element | £4,170 |
| Severely disabled child element | £1,680 |
The family element and child element rules were affected by the child’s date of birth and the two-child limit rules that applied during the tax credit system. Readers checking an old decision should compare their award notice with official records rather than relying only on general online examples.
Example: Why There Was No Simple Earnings Limit
Two households could earn the same salary and receive different outcomes under the old tax credit system.
| Example household | Why the outcome could differ |
|---|---|
| Single worker with no children | Could qualify only if working enough hours and income was low enough after the Working Tax Credit calculation |
| Lone parent with one child | Could have had Working Tax Credit and Child Tax Credit elements, meaning the award could continue at a higher income than for a single worker with no children |
| Couple with childcare costs | Approved childcare costs could increase the maximum award and change the income point where tax credits stopped |
| Disabled worker | Disability elements could increase the maximum award and affect the calculation |
This is why the safest answer is: tax credits did not have one fixed earning limit; they were tapered according to household income and circumstances.
What Happened When Tax Credits Ended?
Tax credits ended on 5 April 2025. People who were still on tax credits should have been moved or invited to move to another form of support, usually Universal Credit or Pension Credit, depending on age and circumstances.
GOV.UK explains the move through its Migration Notice guidance. If someone received a Migration Notice, they usually had to claim Universal Credit by the deadline in the letter to keep receiving financial support and, where eligible, transitional protection.
Tax credit claimants may also receive an Annual Review or finalisation letter from HMRC. This is used to check whether the information held for the final tax credit period is correct. If the information is wrong, the claimant should contact HMRC by the deadline shown in the letter.
What If You Were Overpaid Tax Credits?
Tax credit overpayments can still matter after tax credits have ended. An overpayment can happen if HMRC paid more than the person was entitled to receive. This may be due to income changes, working hours, household changes, childcare changes, or incorrect information.
If a person has moved to Universal Credit, old tax credit overpayments may be recovered from Universal Credit payments. Anyone who thinks an overpayment is wrong should check their HMRC letter carefully and seek advice quickly.
For practical support, readers can check Citizens Advice guidance for people who used to get tax credits. The Low Incomes Tax Reform Group also has useful guidance on tax credits after the system closed.
What Replaced Tax Credits?
For most working-age households, Universal Credit has replaced tax credits. Universal Credit is paid monthly and is calculated differently from tax credits. It looks at monthly income, savings, rent, children, health conditions, caring responsibilities and other circumstances.
| Old support | Usual replacement or alternative | Key difference |
|---|---|---|
| Working Tax Credit | Universal Credit | Calculated monthly rather than annually |
| Child Tax Credit | Universal Credit child element | Part of one monthly Universal Credit award |
| Tax credits for people over State Pension age | Pension Credit may apply | Different pension-age benefit rules apply |
| Low-income help with council bills | Council Tax Reduction | Run by local councils with local scheme rules |
People unsure what they can claim should use a free benefits calculator. GOV.UK lists independent benefits calculators, and many readers also use the Turn2us Benefits Calculator.
How Much Can You Earn and Still Get Universal Credit?
Universal Credit also does not have one simple earnings limit. Instead, it is reduced as earnings rise. In many cases, Universal Credit goes down by 55p for every £1 earned from work, after any work allowance that applies.
A work allowance may apply if the claimant or their partner is responsible for a child, or if they have limited capability for work. People without a work allowance may see their Universal Credit reduced from the first £1 of earnings.
Universal Credit can be affected by:
- net monthly earnings;
- partner’s earnings;
- rent and housing costs;
- children and childcare costs;
- health or disability elements;
- savings and capital;
- other income;
- benefit cap rules;
- sanctions, deductions or overpayments.
This means two people on the same wage may receive different Universal Credit amounts. A benefits calculator is usually the safest way to estimate entitlement before making decisions about work, hours or childcare.
Do Savings Affect Tax Credits or Universal Credit?
Historically, tax credits were mainly based on income rather than savings themselves. However, income from savings, investments or capital could sometimes count.
Universal Credit works differently. Savings and capital can reduce or stop Universal Credit. In general, savings above £6,000 can reduce Universal Credit, and savings above £16,000 usually mean a person is not eligible, unless special transitional rules apply after a managed move from tax credits.
Readers comparing benefits may also find The Business View guide on how savings affect Jobseeker’s Allowance useful, because New Style JSA is contribution-based and works differently from means-tested benefits.
What Changes Had to Be Reported for Tax Credits?
Although tax credits have ended, reporting rules still matter for people finalising old awards or dealing with HMRC letters. Under the old system, claimants had to report certain changes, including changes in income, working hours, childcare costs, household status and responsibility for children.
Common reportable changes included:
- income increasing or decreasing significantly;
- working hours changing;
- moving in with a partner or separating from a partner;
- having a baby or becoming responsible for a child;
- childcare costs starting, stopping, increasing or decreasing;
- a child leaving approved education or training;
- disability benefit starting, stopping or changing;
- bank details or address changing.
Anyone who receives a final tax credit letter should check the details carefully. Wrong information can lead to underpayments, overpayments or penalties.
Tax Credits and Child Benefit: Are They the Same?
No. Child Tax Credit and Child Benefit are different.
| Payment | What it means | Status in 2026 |
|---|---|---|
| Child Tax Credit | Old tax credit support for people responsible for children | Ended on 5 April 2025 |
| Child Benefit | Separate payment for people responsible for children | Still exists, but high earners may face the High Income Child Benefit Charge |
Families looking for current help with children should check Child Benefit guidance on GOV.UK and Universal Credit child elements, rather than trying to make a new Child Tax Credit claim.
What Should Readers Do Now?
The right next step depends on why the person is searching for tax credit earning limits.
| Reader situation | Recommended next step |
|---|---|
| You want to make a new tax credits claim | You cannot make a new claim. Check Universal Credit or Pension Credit instead. |
| You received a tax credit finalisation letter | Check all details and contact HMRC before the deadline if anything is wrong. |
| You were told you owe a tax credit overpayment | Check the calculation, deadlines and appeal options. Consider Citizens Advice or another benefits adviser. |
| You are working and need help with living costs | Use a benefits calculator to estimate Universal Credit and local support. |
| You recently lost work or reduced hours | Check New Style JSA, Universal Credit and local support schemes. |
| You are struggling with bills | Check Council Tax Reduction, local hardship schemes and any current DWP support updates. |
For wider financial support updates, readers can also check The Business View coverage of DWP Cost of Living Payment updates, while remembering that eligibility rules and payment schemes can change from year to year.
Common Mistakes to Avoid
- Do not rely on old tax credit income limits as current rules. Tax credits have ended.
- Do not assume Universal Credit works like tax credits. Universal Credit is calculated monthly, not annually.
- Do not ignore HMRC finalisation letters. Deadlines can affect underpayments, overpayments and penalties.
- Do not assume Child Benefit has ended. Child Benefit is separate from Child Tax Credit.
- Do not hide income, savings or household changes. Incorrect information can create overpayments and penalties.
- Do not claim Universal Credit before understanding migration rules if you had a Migration Notice. Timing can affect transitional protection.
Conclusion
The old question “how much can you earn and still get tax credits?” now needs an updated answer. Tax credits ended on 5 April 2025, so no one can make a new Working Tax Credit or Child Tax Credit claim in 2026.
Before tax credits ended, there was no single earnings limit. Awards were based on household income, working hours, children, disability elements and childcare costs, with payments gradually reduced as income rose.
For current help, readers should check Universal Credit, Pension Credit, Child Benefit, Council Tax Reduction and other support that fits their circumstances. Anyone dealing with an old tax credit award, finalisation letter or overpayment should check the details carefully and seek advice before deadlines pass.
FAQs About Earnings and Tax Credits
Can I still get Working Tax Credit in 2026?
No. Working Tax Credit ended on 5 April 2025. You cannot make a new claim in 2026.
Can I still get Child Tax Credit in 2026?
No. Child Tax Credit ended on 5 April 2025. Families should check Universal Credit, Child Benefit and other support instead.
How much can I earn and still get tax credits?
For current claims, the answer is no amount, because tax credits have ended. Historically, there was no single fixed earnings limit. The award depended on household income, children, working hours, childcare costs and disability elements.
Were tax credits based on gross or net income?
Tax credits used annual income rules set by HMRC. The calculation could include employment income, self-employment income, taxable benefits and other income. Some deductions and disregards applied, so people checking an old award should use HMRC figures rather than guessing from take-home pay.
What replaced Working Tax Credit?
Universal Credit has replaced Working Tax Credit for most working-age people on a low income. Pension Credit may be relevant for people who are State Pension age.
What replaced Child Tax Credit?
For most working-age families, the child-related support that used to sit in Child Tax Credit is now handled through Universal Credit child elements. Child Benefit is separate and still exists.
Can I work and still get Universal Credit?
Yes, many people work and still receive Universal Credit. The payment usually reduces as earnings rise, so there is no single income limit that applies to everyone.
Can savings stop Universal Credit?
Yes. Savings and capital can reduce or stop Universal Credit. In many cases, savings above £6,000 reduce entitlement, while savings above £16,000 usually mean no entitlement, unless transitional rules apply.
What happens if I was overpaid tax credits?
HMRC can still recover tax credit overpayments after the tax credit system has ended. If you disagree with the decision, check your letter, deadlines and appeal rights quickly.
Should I use a benefits calculator?
Yes. Because Universal Credit depends on monthly income, rent, children, childcare, savings, disability and other factors, a free benefits calculator is often the quickest way to estimate entitlement.
Editorial note: This article is for general information only. Tax credits and benefit rules can depend on household income, working hours, children, disability status, childcare costs, savings, migration notices and previous awards. Readers should check official guidance or speak to a qualified benefits adviser before making financial decisions.
