Tax Credits Calculator (Legacy)
Calculate Working Tax Credit and Child Tax Credit for existing claimants. Includes childcare element.
Source: GOV.UK — Tax Credits
By Konstantin Iakovlev · Founder, Calks.uk
Last updated: · Verified against HMRC and GOV.UK 2026/27 rates
Estimated Annual Award
£9,511.62
£792.63/month · £182.92/week
| Working Tax Credit | £3,508.00 |
| Child Tax Credit | £7,455.00 |
| Childcare Element (70%) | £3,640.00 |
| Maximum Award | £14,603.00 |
| Income Taper (41%) | -£5,091.38 |
| Your Award | £9,511.62 |
Tax Credits are being replaced by Universal Credit. You can't make a new claim — this is for existing claimants only. If your circumstances change, you'll be moved to UC.
Disclaimer
This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.
How It Works
Tax Credits are legacy benefits being replaced by Universal Credit, but existing claimants can still receive Working Tax Credit (WTC) and Child Tax Credit (CTC). WTC is for people working a certain number of hours per week: at least 16 hours if you have a disability or are a single parent, or 30 hours otherwise. The basic element for 2026/27 is £2,435 per year.
Child Tax Credit provides up to £3,455 per child (the child element) plus a family element of £545. Entitlement is reduced by 41% of household income above the threshold of £7,455 for those receiving both WTC and CTC, or £19,995 for CTC-only claimants.
New claims for Tax Credits are no longer accepted in most areas. Existing claimants will be migrated to Universal Credit by the end of 2026/27. If you receive a migration notice, you may be eligible for transitional protection to ensure your income does not drop.
Tax Credits being phased out — migration to Universal Credit. Working Tax Credit and Child Tax Credit are closing. Existing claimants being moved to Universal Credit via 'managed migration' 2024-2028. No new Tax Credit claims accepted since 2019. If you receive Tax Credits: expect a 'Migration Notice' from DWP between 2024-2028, then 3 months to claim UC or lose benefits.
Transitional Protection for migrators. Moving from Tax Credits to UC, your UC must be at least as much as your old benefits — difference paid as 'Transitional Protection' top-up that erodes over time as UC rates rise. Lost if: (1) you voluntarily migrate before notice; (2) your circumstances change significantly; (3) joint claim becomes single (or vice versa).
Universal Credit replacement structure. UC combines 6 legacy benefits: WTC, CTC, Income Support, JSA, ESA, Housing Benefit. Standard monthly allowances + elements (child, disability, carer, housing). Work allowance + 55% taper rate. Capital limit £16,000. Self-employed: minimum income floor after 12 months. Claim via gov.uk/universal-credit — entirely online process.
Childcare and Tax Credits transition. Tax Credits paid childcare costs UP-FRONT to nursery/childminder. UC reimburses childcare AFTER you pay (up to 85% reimbursed, capped £1,031/month one child, £1,768 two+). Many migrating families face cashflow crisis — pay childcare upfront, wait for UC reimbursement. Childcare Choices website helps compare: UC, Tax-Free Childcare, free hours (30 hrs working parents).
Example: Couple, 2 children, £25,000 income, 35 hours/week
- WTC basic element: £2,435
- WTC couples element: £2,500
- CTC child elements: 2 x £3,455 = £6,910
- Maximum entitlement: £11,845
- Income taper: (£25,000 - £7,455) x 41% = -£7,193.45
- Estimated annual award: £4,651.55
Source: GOV.UK — Tax Credits
Frequently Asked Questions
- What does the Tax Credits Calculator (Legacy) do?
- Calculate Working Tax Credit and Child Tax Credit for existing claimants. Includes childcare element.
- Are benefit amounts accurate?
- This calculator uses the published 2026/27 benefit rates. However, actual entitlements depend on a full assessment by the Department for Work and Pensions (DWP) and may differ from estimates.
- How do I claim this benefit?
- You can apply for most benefits through GOV.UK or your local Jobcentre Plus. Some benefits require an online application; others may require a phone call or paper form.