How to Claim Child Tax Credit and Working Tax Credit in 2026

Child Tax Credit and Working Tax Credit are two legacy benefits administered by HMRC that provide financial support to families with children and to low-income workers. Both are in the process of being replaced by Universal Credit (UC), a single monthly payment administered by the Department for Work and Pensions. Understanding where you stand — especially if you are still receiving tax credits — is critical in 2026.

What Are Tax Credits?

Tax credits are not technically taxes but rather means-tested benefits paid by HMRC based on annual income and personal circumstances. Child Tax Credit supports families with children. Working Tax Credit tops up the incomes of low-paid workers, including self-employed people. Both are based on the previous tax year's income, adjusted during the year if circumstances change significantly.

The Migration to Universal Credit

The government has been migrating all tax credit claimants to Universal Credit since 2019. Managed migration — where HMRC sends Migration Notices — was scaled up significantly from 2023 and is expected to be largely complete by late 2025 or early 2026. Once you receive a Migration Notice, you have a deadline (typically 3 months) to claim Universal Credit. If you do not claim in time, your tax credits are stopped.

Transitional Protection

If your Universal Credit entitlement is lower than your tax credits on migration day, you receive a Transitional Element to make up the difference. This transitional protection is maintained until your circumstances change significantly (for example, you start working more hours, your income rises, or you have another child). Transitional protection can be substantial for some families who receive larger tax credit awards than they would under UC.

Who Might Still Be Claiming Tax Credits in 2026?

By April 2026, the vast majority of tax credit claimants should have migrated to Universal Credit. A small number of claimants with complex circumstances — those over State Pension age receiving Pension Credit, for instance — may still be on legacy benefits. If you are still receiving tax credits and have not received a Migration Notice, contact HMRC's tax credits helpline (0345 300 3900) to understand your position.

Renewing Tax Credits

If you are still receiving tax credits in 2026, you must renew your claim each year by 31 July. HMRC sends renewal packs by post from April. You can renew online at gov.uk/manage-your-tax-credits, by phone, or by returning the renewal form. Failure to renew on time can cause payments to stop and may result in an overpayment which HMRC will seek to recover.

Tax Credits and Self-Employment

Self-employed people claiming tax credits or Universal Credit are subject to the Minimum Income Floor under UC — an assumption that self-employed claimants earn at least the equivalent of the National Living Wage for their expected hours, even if actual profits are lower. This can significantly reduce UC entitlement for self-employed people with fluctuating income, particularly in early years of trading.