Child Tax Credit
What is it?
Child Tax Credit is a means-tested allowance for parents and carers of children or young people who are still in full-time non-advanced education or approved training. You do not have to be the child's parent to be eligible but you must be the main person responsible for them.
Child Tax Credit now replaces the money that used to be paid as part of Income Support or Jobseekers Allowance for your children. If you are claiming Income Support or Jobseekers Allowance for yourself, you now need to make a separate claim for Child Tax Credit as well. However, you don't need to be in receipt of Income Support or Job Seekers Allowance to qualify for Child Tax Credit.
Child Tax Credit is administered by HM Revenues and Customs.
Do I qualify?
You may get Child Tax Credit if you are responsible for at least one child under 16 or young person in full-time education at school or college, or who is doing approved training on a specified programme like Entry to Employment.
Tax credits are based on your household circumstances, so whether you qualify, and any amount will depend on:
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your income
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your partner's or civil partner's income (if you have one)
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the children in your family
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personal circumstances, such as whether you or a child is disabled.
Tax Credits are usually calculated on an annual basis, and on your income from the previous financial year (this runs from April to March).
If either you or your partner works at least 16 hours a week, you may also be entitled to Working Tax Credit.
For an easy way to find out which benefits might apply to you and your circumstances go to What can I claim?
The Benefits Maximisation Service can provide personal advice on what you may be entitled to and help you make a claim. For more information go to Benefits Maximisation Service.
How much is it?
Child Tax Credit is made up of a number of elements depending on your circumstances, and also depends on your household income. It is therefore not possible to say how much any individual family might get.
However, you can qualify for Child Tax Credit on quite high gross incomes (e.g. over £50,000 a year) so it is always worth checking whether you could claim.
How do I apply?
You can:
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claim Child Tax Credit by post
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report a change of circumstance by phone or post
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renew your tax credits award by phone or post (once you get the form sent to you in April or May).
You can order a claim pack over the phone by calling the Tax Credits helpline on 0845 300 3900, textphone 0845 300 3909.
Lines are open every day (except Christmas Day, Boxing Day, New Year's Day and Easter Sunday) from 8.00 am to 8.00 pm.
When calling make sure that you know or have your National Insurance Number with you, as you will need to give this to prove who you say you are.
What if I am not satisfied with the decision?
Generally, if you think the decision is wrong you should make a written appeal within 30 days from the date on the decision.
It is very important that you reply within 30 days, as you may not be able to challenge the decision otherwise.
You can appeal using the Inland Revenue leaflet WCT/AP How to Appeal Against a Tax Credit Decision or Award.
Our Benefit Maximisation Service can help you with appeals.
What if my circumstances change?
If your circumstances change during the year your entitlement to child tax can change. There are some changes that you must inform HM Revenues and Customs of:
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A change to your status as a single person or couple
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You move abroad
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Your child care costs end or reduce by £10 a week or more (where you are also claiming Working Tax Credit)
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Your work hours change so that you no longer meet the 16 or 30 hour a week qualifying rule (where you are also claiming Working Tax Credit)
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You stop being responsible for a child or qualifying young person.
If your income goes up or down during the year (excluding the circumstances listed above), you do not have to inform HM Revenues and Customs. HM Revenues and Customs will simply calculate your new award based on your annual income at the end of the year. If you have been overpaid or underpaid your award will be adjusted to pay you back, or reclaim the overpayment. However, if your income has increased by under £25,000 per year, you will not be treated as having been overpaid (although your new award will be based on your new income).
If your income goes down during the year it may be beneficial to inform HM Revenues and Customs immediately, and ask for your award to be revised. This would mean you could get additional tax credits. However, there are some circumstances, particularly if you are claiming Housing Benefit or Council Tax Benefit, where it could be beneficial to you not to report the change at the time. The Benefits Maximisation Service can provide personal advice on this situation. For more information go to Benefits Maximisation Service.
Disclaimer
Although every effort is made to ensure the information on these pages is accurate and up to date, it should not be treated as a complete and authoritative statement of the law.