Skip to main content
Inland Revenue

Tax Policy

PUBLISHED 29 May 2020

In-work tax credit grace period

The Government has announced a proposed change to the In-Work Tax Credit as part of the Covid-19 Response Recovery Fund.

The proposal is to allow a family currently receiving the in-work tax credit to continue receiving the payments for up to two weeks when taking an unpaid break from work. Payments will stop if they go on a benefit. Draft legislation containing the proposal is expected to be introduced soon and intended to take effect from 1 April 2021.