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Can You Claim Working Tax Credits On An Apprenticeship

There are no special rules for students in the tax credit system; you must meet the same criteria as everyone else. This means you must meet the working tax credit age and hours requirements and be responsible for a child or young person to claim the child tax credit.

You may be entitled to tax credits if you meet specific requirements as an apprentice.

The number of hours you work as an apprentice will vary depending on how your apprenticeship is structured and whether they qualify as remunerative labour for working tax credit purposes. According to HMRC, if you accomplish the following, the hours you spend as an apprentice will be eligible as remunerative labour for tax credits:

  • You have an apprenticeship contract and are enrolled in a programme (apprenticeship) where your compensation is categorised as earnings (rather than reimbursement of expenses) and is subject to income tax and National Insurance contributions.

Your apprenticeship working hours will not be deemed remunerative if you only get a non-taxable training allowance, monies for participation in the Intensive Activity Period (part of jobseeker’s allowance programmes), a sports award, or no money other than tax-exempt discretionary payments.

This means that if you have an employment contract and your remuneration is defined as taxable earnings rather than reimbursement of expenses or a non-taxable training allowance, it should be regarded as remunerative labour for the purposes of working tax credit.

Updated on August 29, 2022

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