Working Tax Credit Calculator
Working Tax Credit closed on 5 April 2025 and is replaced by Universal Credit. See how UC now tops up low earnings using the standard allowance, work allowance and 55% taper.
In-work UC estimate
Now paid via Universal Credit. 2025/26 rates.
Working Tax Credit ended on 5 April 2025. In-work support is now Universal Credit — check on GOV.UK Universal Credit.
Working Tax Credit has ended
Working Tax Credit (WTC) closed to all claimants on 5 April 2025. You can no longer make a new claim, and existing awards have moved to Universal Credit. The good news is that Universal Credit also tops up low earnings — but instead of fixed elements and an annual reconciliation, it uses a monthly standard allowance, a work allowance and a 55% taper.
Under Universal Credit, a single person aged 25+ starts from a £400.14 monthly standard allowance. If you have children or a health condition you also get a work allowance (£411 or £684 a month) before your award is reduced by 55p for every extra £1 of take-home pay.
How the in-work top-up works
| Element | 2025/26 |
|---|---|
| Standard allowance, single 25+ | £400.14 / month |
| Standard allowance, couple 25+ | £628.10 / month |
| Work allowance (with housing help) | £411 / month |
| Work allowance (no housing help) | £684 / month |
| Earnings taper | 55% |
Source: GOV.UK — Universal Credit and Tax credits have ended.
Tax credits vs Universal Credit
The key difference is timing: tax credits were worked out yearly, while Universal Credit recalculates every month from your actual earnings, so your top-up rises in lean months and falls in busy ones. A work allowance only applies if you have children or a health condition. For your full award including housing and child elements, use our Universal Credit calculator.
Frequently asked questions
Can I still claim Working Tax Credit?
No. Working Tax Credit closed to everyone on 5 April 2025. In-work support for people on low earnings is now provided through Universal Credit, which uses a monthly standard allowance and a 55% earnings taper.
How is Universal Credit different from Working Tax Credit?
Working Tax Credit was a fixed amount worked out once a year. Universal Credit is recalculated each month from your actual take-home pay, so your top-up changes as your earnings change. A work allowance applies if you have children or a health condition.
What is the work allowance?
The work allowance is the amount you can earn before Universal Credit starts to taper. In 2025/26 it is £411 a month if you get help with housing, or £684 a month if you do not. Only people with children or a health condition get a work allowance.
What is the 55% taper?
After any work allowance, Universal Credit is reduced by 55p for every extra £1 of net earnings. So earning £100 more cuts your award by £55, leaving you £45 better off overall.
Will I lose money moving from tax credits to UC?
Some people get more and some less. If you were asked to move via a Migration Notice, you may qualify for transitional protection that tops up your Universal Credit so you are not worse off at the point of change.