ek, if you have a physical or mental disability which puts you at a disadvantage in getting a job; or
- at least 60 years old and working for not less than 16 hours per week.
The hours requirements are different if you have children or a part of a couple. For a full list of the requirements go to Do I qualify for working tax credits (WTC)?.
HMRC say that the hours you work as an apprentice will count as ‘remunerative’ work for WTC purposes if:
- you have a contract of employment for your apprenticeship.
- you are attending a scheme (apprenticeship) where your payment is classed as earnings and subject to income tax and NIC.
We advise that you contact the Tax Credits helpline and explain your situation.
You can find more on Tax Credits and Apprenticeships in the tax credits and benefits section.
In terms of universal credit and apprenticeships, you can claim universal credit while you are on a ‘recognised’ apprenticeship. DWP’s guidance says that this means you must:
- have a named training provider
- be working towards a recognised qualification
- be paid at least the NMW for an apprentice
You must also be able to provide:
- the name of your training provider
- the name of the vocational qualification you are studying for.
There are no upper or lower limits to the number of hours that you must work to qualify for universal credit as an apprentice but you may be expected to carry out ‘work related activity’ as part of your Claimant Commitment if your earnings are not above a certain level, known as your Conditionality Earnings Threshold (CET). If you are an apprentice this will be no more than 30 hours a week multiplied by the applicable minimum wage rate. If you are disabled, then this could be less or you may not be subject to CET at all. This can be discussed with your work coach and will be agreed as part of your universal credit Claimant Commitment.
Rosie was born in November 1998 and began her two year apprenticeship on 1 September 2019. Rosie is paid per calendar month and her NMW will be as follows:
- 1 September 2019 - 31 March 2020: Rosie’s NMW will be £3.90 per hour.
- 1 April 2020 - 31 August 2020: Rosie’s NMW will be £4.15 per hour as the NMW rates changed on 1 April 2020.
- 1 September 2020 - 31 March 2021: Rosie’s NMW will be £8.20 per hour as she has completed the first year of her apprenticeship. As she is aged over 19 she will be paid the NMW according to her age (on 1 September 2020, Rosie will be 21 years old).
Seamus started his three-year apprenticeship on 6 September 2017; he turned 17 on 8 May 2018. Seamus gets paid at the end of each calendar month and his NMW is as follows:
- 6 September 2017 - 31 March 2018: Seamus’s NMW rate was £3.50 per hour.
- 1 April 2018 - 31 March 2019: the NMW rate changed from 1 April 2018. Seamus’s NMW rate increased to £3.70 per hour. Even though Seamus completed his first year of his apprenticeship on 5 September 2018, he remained on the apprentice NMW rate as he was under 19 years old.
- 1 April 2019 - 31 March 2020: the NMW rate increased from 1 April 2019. Seamus’s NMW rate was £3.90 per hour.
- 1 April 2020 - 15 May 2020: the NMW increased to £4.15 per hour.
- 16 May 2020: Seamus’s NMW rate will change as he is now 19 and he has been on his apprenticeship for longer than one year. His new NMW rate is £6.45 per hour. The change will take effect from the beginning of the pay period after Seamus’s birthday and not from the actual date of his birthday.