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Can You Get Working Tax Credit On An Apprenticeship

If you meet specific conditions as an apprentice, you get working tax credit on an apprenticeship.

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 complete 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). 
  • Your salary is defined 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 a contract of employment and your payment is defined as taxable earnings rather than reimbursement of expenses or a non-taxable training allowance, it should be categorised as remunerative labour for working tax credit reasons.

Updated on August 31, 2022

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