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Universal Tax Credit

With effect from April 2025, Universal Credit will replace Child Tax Credits and Working Tax Credits. It does not replace Child Benefit.

This helpsheet looks at Universal Tax Credit.

The Universal Tax Credit is a key part of the Government's welfare policy. These tax credits have nothing to do with the tax system. They are not refunds or credits of tax but are simply benefits administered by DWP.

For what is a relatively simple idea, the whole calculation of Universal Tax Credit can be extremely complex.

Universal Tax Credit (UC)

The monthly rates for 2025/26 are available here

Child Benefit

Anyone who is responsible for caring for a child can claim a monthly child benefit payment. Due to a tax called the High-income child benefit charge, once one parent earns £60,000 or above, the benefit is reduced. If one parent earns above £80k, you have to pay back the entire entitlement. However, it is not means-tested.

How We Can Help You

We can assist you with making your claim for child tax credit and working tax credit, protective claims and checking any claims you are receiving.

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