Working tax credit

Working Tax Credit (WTC) is a state benefit in the United Kingdom made to people who work and have a low income. It is a part of the current system of refundable (meaning that if the credit exceeds the amount of taxes owed, the excess is returned to the taxpayer) tax credits introduced in April 2003 and is a means-tested benefit. Despite their name, tax credits are not to be confused with tax credits linked to a person's tax bill, because they are used to top-up wages. Unlike most other benefits, it is paid by HM Revenue and Customs (HMRC).