Tax Initiatives that Benefit the Disabled

Tax Initiatives that Benefit the Disabled

The UK government has many initiatives in place designed to help disabled people obtain the tax relief they so often desperately need in order to stay financially afloat. Of particular interest are the Working Tax Credit and the Child Tax Credit, both of which can be increased should you be disabled. In this post we’ll take a quick look at how, beginning with the Working Tax Credit.

The Working Tax Credit - To be eligible for the Working Tax Credit you must work at least 16 hours a week and satisfy the requirements of a “disability test.” You must also be the recipient (or recent recipient) of a qualifying benefit.

The Disability Test - To qualify as a disabled worker you must prove a physical or mental disability which puts you at a disadvantage in getting a job. You can obtain relevant forms from HM Revenue and Customs (HMRC) either in person or through their helpline. You will be expected to meet at least one of these conditions:

  • You were receiving incapacity benefits at some time in the 26 weeks prior to claiming the Working Tax Credit.

  • You were receiving the disability premium or elevated pensioner premium via income support, jobseekers allowance and/or housing benefit at some point in the 26 weeks prior to claiming the Working Tax Credit.

  • You receive disability living allowance, attendance allowance, personal independence payment or armed forces independence payment.

  • You require and have a motability car on the date of and throughout your claim.

  • You have been training for work and have been getting incapacity benefits, employment and support allowance, severe disability allowance or national insurance credits.

Other conditions may also be applicable before you can claim the Working Tax Credit. You can get more information here.

The Child Tax Credit

The Child Tax Credit can be increased for the disabled in a number of ways. If your child receives the highest rate of the DLA care component, PIP enhanced rate or armed forces independence payment they will be eligible for the severely disabled rate. Likewise, your child may qualify for the disabled child rate if they receive any other DLA or PIP or have a severe sight impairment or blindness certified by an ophthalmologist.

Get more information by contacting the HMRC helpline on 0345 300 3900. You may also download one of the many helpful Factsheets from the HMRC website or pick one up in person at a local HMRC office.


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