Child Tax Credit Q&A

What is Child Tax Credit?

Child tax credit is a tax credit based on the number of dependent children in a family. Child tax credit is paid direct to the person who is mainly responsible for at least one child or qualifying young person.

There are various different elements of child tax credits. These include the family element, the baby element, the child element, the young person element and the disability element. All elements are paid at different rates.

Who can get child tax credit?

Currently, parents or guardians can claim child tax credits if they earn up to £58,000 a year and £66,000, if the child is under the age of one.

You can claim child tax credit if:

-your child lives with you (up until the 31st August after their 16th Birthday)

-your child is over 16 and is in full-time, non-advanced education or approved training

Note:

-You cannot claim child tax credit when your child reaches the age of 20.

-Only one person can claim child tax credit for your child.

How much can you claim?

The lower your income, the more a parent or guardian can claim. Payments are potentially worth up to £2,850 a year for just one child.

How is child tax credit paid?

Payments will usually be made into a bank or building society account. You can choose whether to receive payments weekly or monthly.

How can you claim child tax credit?

You can get a claim pack sent to you from HM Revenue and Customs or you can:

-Phone the HMRC helpline on 0845 300 3900

-visit any HMRC Enquiry Centre

You should be able to provide:

-Your income details (and those of your partner if you have one) and the WTC1 8 form.

-Your National Insurance Number (and your partners)

What changes have been made?

From April 2011, Child Tax Credits will be reduced for families with a household income of more than £40,000 and families who have a child under the age of one will no longer receive the current additional £545 a year.

In 2011-2012 the amount given to each child in the child element of CTC will increase by £150 above consumer price indexation and will increase again in 2012-2013 by £60.

Go to: http://www.hmrc.gov.uk/leaflets/wtc2.pdf to download the full details of entitlement.