Child Tax Credit
Child Tax Credit is currently available to families with incomes of up to £58,000 (or £66,000 if the child is under 1 year old). This benefit will be paid directly to the person responsible for looking after the child. There are no work requirements and the credit will be available until the September after the child’s 16th birthday or up to the age of 19 if they remain in full time non-advanced education.
The Child Tax Credit comprises a number of elements including a family element payable to all eligible families, extra elements for each child and for children under one year old. Additional amounts will apply for disabled children.
The credit will be means-tested and made available for families with incomes of up to £58,000. Means testing will be based on a couple’s joint income rather than the income of the highest earner. Single parents can also make a claim.
You can claim Child Tax Credit online on the Inland Revenue website, or by completing a Tax Credit application form obtained from your local tax office. It is important to note that Child Tax Credit will only be paid if a valid claim has been registered and that in the case of late claims, such applications, will be backdated for a maximum of 3 months only.
Working Tax Credit
This has replaced the Working Families Tax Credit and Disabled Persons Tax Credit. The part of Working Tax Credit relating to work will be paid to the adult in work whether or not there are any children. It comprises a basic element payable at different rates for individuals and families, provided that the Applicant works for at least 16 hours per week.
A formal application has to be made to the Inland Revenue and in the event of a late claim, such applications will be backdated for a maximum period of 3 months. For further information we suggest that you log onto the Inland Revenue website at www.inlandrevenue.gov.uk.
