Last updated: 14 October 2026
Tax credits (Working Tax Credit and Child Tax Credit) ended on 5 April 2025. You cannot make a new claim for either. If you are on a low income, out of work or unable to work, you may be able to get Universal Credit instead, or Pension Credit if you have reached State Pension age.
Universal Credit is a monthly payment to help with living costs. It replaced tax credits and several other benefits, and it is run by the Department for Work and Pensions (DWP), not HMRC.
If you received tax credits up to 5 April 2025, HMRC will send you an Annual Review letter showing what you were paid. Check it carefully and contact HMRC by the deadline in the letter if anything is wrong. Any overpayment may still have to be repaid.
What is Universal Credit?
Universal Credit is a single monthly payment for people who are working on a low income (including self-employed and part-time workers), out of work, or unable to work because of a health condition.
To claim, you must:
- live in the UK
- be aged 18 or over (there are some exceptions for 16 and 17-year-olds)
- be under State Pension age
- have £16,000 or less in money, savings and investments
If you live with a partner, you must make a joint claim for your household, and your partner’s income and savings are taken into account.
How much you get depends on your standard allowance, any extra amounts that apply to you (for example, for children, childcare, disability or caring) and your earnings. For every £1 you earn from work, your Universal Credit payment goes down by 55p. Some people with children or a health condition can earn a set amount, called a work allowance, before their payment starts to reduce.
Report Changes That Affect Your Universal Credit
You must report changes in your circumstances as soon as they happen, through your online Universal Credit account. A change can affect your payment for the whole monthly assessment period, and you will have to pay back anything you are overpaid. Changes include:
- moving in with a partner, or separating from your partner
- having a baby or starting to care for a child
- a child aged 16 to 19 stopping or restarting education or training
- starting to care for a disabled person
- finding or finishing a job
- changes to your earnings, if you are self-employed (most employers report your wages for you)
- changes to your health condition
- your rent going up or down, or moving to a new address
- changes to your childcare costs
- changing your bank details, phone number or email address
If Your Relationship Ends
If you separate from your partner, report it straight away. Your joint claim will end and you will each need to claim as a single person.
Going Abroad, Income and Working Hours
You must also tell DWP if:
- you or your partner go outside Great Britain (or Northern Ireland, if you live there) for any length of time
- you leave the UK permanently or lose your right to reside
- your savings go above £16,000
- you start or stop getting another benefit, such as Personal Independence Payment or Carer’s Allowance
There is no limit to the number of hours you can work while claiming Universal Credit. As your earnings rise, your payment reduces gradually rather than stopping suddenly.
How to Claim Universal Credit
You apply online by creating a Universal Credit account. You must complete your claim within 28 days of creating your account, and your claim starts on the date you submit it. If you live with a partner, you each create an account and link them. If you cannot claim online, you can claim through the Universal Credit helpline.
You will need your bank, building society or credit union details, an email address, access to a phone and identity documents such as a passport, driving licence or P60. If you already get other benefits, check whether you will be better off before claiming, because some benefits end when you claim Universal Credit and cannot be restarted.
What is the Time Limit to Report Changes?
Report changes as soon as they happen. A delay could mean you are paid too little or too much, and any overpayment must be paid back.
How to Report Changes?
- Online: sign in to your Universal Credit account and report the change on your journal or the “report a change†page.
- By phone: call the Universal Credit helpline if you cannot use your online account.
Self-employed and on Universal Credit? You must report your earnings every month. Our self-employed accountants can keep your records up to date, or contact us for advice.
Disclaimer: All the information provided in this article on Universal Credit, including all the texts and graphics, is general in nature. It is not a substitute for professional advice. For full details, see GOV.UK: Universal Credit.
