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Can You Claim Working Tax Credit on an Apprenticeship

If you meet the criteria as an apprentice, you might be eligible for tax breaks, so can you claim working tax credit on an apprenticeship?

The hours you spend as an apprentice can vary depending on how the apprenticeship is structured and whether they count as remunerative jobs for the working tax credit. According to HMRC, the hours you spend as an apprentice will be considered work for tax purposes if you do the following:

  • You have a job arrangement for your apprenticeship.
  • You are part of a scheme (apprenticeship) under which your paycheck is known 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 received a non-taxable tuition charge, funds for participating in the Intensive Activity Period (part of jobseeker’s allowance schemes), a sports bonus, or no money other than tax-exempt monetary pay.

This means that if you have a contract of jobs and your income is treated as taxable compensation rather than a non-taxable tuition gain, it should be classified as remunerative labour to work tax credit.

In conclusion, if you meet the right requirements you an claim working tax credit on an apprenticeship.

Updated on December 23, 2021

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