UK Tax Credits are means-tested payments that are based on current personal circumstances. There are two types:

1. Working Tax Credits – support for low income workers
2. Child Tax Credits – for those with responsibility for children (considered a Family Benefit under EU rules)

They are both now legacy payments so no new claims can be made, instead claims should be made for Universal Credit.

Existing Tax Credit claims are being gradually moved to Universal Credit however a change in personal circumstances can also result in a compulsory move to Universal Credit.

It is very important to speak with a benefits advisor about your circumstances in case a move to UC results in a lower amount being paid (when compared to Tax Credits). Cashflow can also be affected while a UC claim is being processed.

Cross-border issues

Cross-border claims for UK Tax Credits are very complicated and you should consider contacting the HMRC or a local Community Advice organisation to confirm your exact circumstances. This is especially important if  you have an existing Tax Credits claim and your situation is changing which could trigger a move to Universal Credit.

For those existing Tax Credit claimants living North, taking up employment in the South, overpayments of Tax Credits or stoppage of the benefit can incorrectly occur.  It is important to seek specialist independent advice and support from a local Community Advice organisation when reporting your change of circumstances to the Tax Credit Office.

Up until March 2022 frontier workers living South, working North could open a new Tax Credit claim, however that has now stopped and an application for Universal Credit can now be considered.

See also

• UK Gov – Tax Credits 
• Border People – Universal Credit
• Border People – Child Benefit in Ireland
• NI Direct – Universal Credit 
• FOR ADVISORS: please see the HMRC Tax Credits manuals and  www.revenuebenefits.org.uk

Page last checked: December  2022

This webpage is for general information purposes only and while we endeavour to keep it up-to-date, errors may occur. It is very important that you check with the relevant body to ensure the information is current and is applicable to your situation.

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