What is Child Tax Credit?
Child Tax Credit is extra money paid by the government to people who have children. It separates out benefit payments made for children from those made for adults.
Who can claim?
Child Tax Credit is paid to families, either in work or out of work, with at least one child. It is available to more people than under the previous arrangements, for example, for degree level students and NHS students with children, or families with their youngest child aged 16. Student loans, NHS bursaries and most student grants are ignored when your Child Tax Credit is worked out.
Some facts about Child Tax Credit
Young people aged 16, 17, 18 or 19 in full time education, who live with you, count as children for Child Tax Credit. It also includes young people aged 16 or 17 who have just left school or college, registered with Connexions, and waiting for a place on a training scheme.
The rules for families with children are changing. If you newly claim Income Support, Income-based Employment and Support Allowance, or Income-based Jobseeker's Allowance after 5 April 2004, you will be paid these benefits at adult only rates. You can separately claim Child Tax Credit and Child Benefit.
If you were already getting Income Support or Income-based Jobseeker's Allowance from before 6 April 2004 and it included an increase for a child, this can continue. Your benefit is due to change to adult only rates, with a transfer onto Child Tax Credit for your child or children. This change is due some time in the future. It may be better for you to transfer earlier to Child Tax Credit - for example, if you receive maintenance or have student income. Get advice.
From April 2003, CTC replaced the additions for children paid with Carers Allowance, Widowed Parents Allowance, Incapacity Benefit and Retirement Pension, but only for new claims. If you were getting these benefits before April 2003, you will keep your child additions and will be able to claim CTC as well.
If you are working, you can claim Child Tax Credit and may also be able to claim Working Tax Credit. Childcare costs are paid as part of Working Tax Credit.
For couples, Child Tax Credit will be paid direct to whichever partner is the main carer of the children. Child Benefit continues as normal and will be paid separately and on top of Child Tax Credit.
Child Tax Credit affects how much Housing Benefit and Council Tax Benefit you can get. If you live in Manchester you should tell the Benefits Service at Manchester City Council immediately if you are awarded Child Tax Credit or if there is any change in your Tax Credits or other income. You won't need to do this if you are getting Income Support or Income-Based Jobseeker's Allowance with your Child Tax Credit.
Getting Child Tax Credit might also help you to get Free Schools Meals, Health Benefits, Sure Start Maternity Grant or a Funeral Expenses Payment.
How much will I be paid?
The amount will depend on your yearly income and which of the following five elements you are eligible for:
- Family element
- Baby addition (child under 1 year old)
- Child - you receive a child element for each child
- Disabled child
- Enhanced disabled child
If you are on Income Support, Income-based Employment and Support Allowance, or Income-Based Jobseeker's Allowance, or your yearly income is not more than £15,575 (April 2009 - April 2010), you will get maximum Child Tax Credit. Child Benefit and Child Maintenance are not counted as income when Child Tax Credit is worked out. If your income is above £15,575 a year, your award of Child Tax Credit is reduced. If your income is £50,000 a year or less, you will get at least the basic family element of £10.45 a week, or £20.90 if you have a baby under one year old.
How do I claim Child Tax Credit?
You can claim online (external website) through the HM Revenue & Customs website or you can get a claim form and further information by phoning the HM Revenue & Customs New Tax Credit Helpline on:
0845 300 3900 (Voice), or 0845 300 3909 (Textphone).
Each year you will have to renew your award. If you have been overpaid tax credits, ask HM Revenue & Customs to explain their decision properly. Then seek advice.
What if my circumstances change?
Initially your Child Tax Credit is worked out on a previous year's income. Phone the Inland Revenue if your current year's income is lower or more than £25,000 higher than the income used to work out your Working Tax Credit. Phone HM Revenue & Customs straight away with details of any change in your working, childcare or family situation or income. This should help prevent any underpayment or overpayment of Child Tax Credit.
Tax Credits Office
HM Revenue & Customs
Preston
PR1 0SB
Telephone 0845 300 3900
Information on other websites
HM Revenue & Customs
Government information about tax credits
Directgov
Government information about understanding tax credits, checking if you are eligible, renewing awards or appealing awards.
Adviceguide
Information from Citizen's Advice about tax credits
Hertfordshire County Council
Information on child tax credit and fuller details of how to maintain or renew your claim
Need more help? Live in Manchester? Send us an email
Information Provider:
Manchester Advice
Date Reviewed:
23 January 2009
This information is for guidance only and is not an authoritative statement on the law. Please read our Terms and Conditions.
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