Child Tax Credit and Working Tax Credit

Child Tax Credit

is a means-tested allowance that is paid to parents and carers of children or some young people who are still in education. if their income is no more than £58,175 a year (up to £66,350 if you have a child under one). The amount you get depends on various things, including your annual income. Working Tax Credit is a means-tested allowance for people who is in paid employment and who meet certain other conditions, based on income and circumstances?

If you are a member of a couple you will need to make a joint claim with your partner. If you and your partner have income below a certain level and meet certain other conditions, you may be entitled to Child Tax Credit and/or Working Tax Credit. The amount you receive depends on how much money you have coming into your household each year. If you have any savings, they will not affect your claim. However, if you receive interest from your savings this will be counted as income and may affect the amount you receive. Child Tax Credit and Working Tax Credit are paid by the government but are processed by the Inland Revenue.

Who can get Child Tax Credit

You may get CTC if you're responsible for at least one child under 16 or young person in full-time education at school or college, or who's doing approved training on a specified programme like Entry to Employment.

Who can get Working Tax Credit

Working Tax Credit will be paid if you or your partner are aged 16 or over, working 16 hours or more a week and are responsible for a child or qualifying young person If you are a woman on maternity leave and would normally work 16 hours or more a week. You can still claim Working Tax Credit or are aged 16 or over, working 16 hours or more a week and have a disability for which your are receiving a qualifying benefit; or are aged 50 or over, working 16 hours or more a week and have started work up to three months before you make a claim and, for the six months before starting that work have been receiving one of certain benefits; or are aged 25 or over and working 30 hours or more a week.

How much Child Tax Credit will you get

There is a maximum amount of Child Tax Credit you can get. The amount is made up of different elements which are a family element – which is paid to any family with responsibility for one or more children child element which is paid for each child or qualifying young person in the family.

Family element

If you are entitled to Child Tax Credit you will get the family element. There is an extra amount payable to families with a child under the age of one.

Child element

The rate of child element for each child depends on the circumstances of each child in the family. There are extra amounts for children who are disabled. If your child is registered blind or entitled to disability living allowance, you will be eligible for the disabled child element. If your child is severely disabled and entitled to the highest rate care component of disability living allowance, you will be eligible for the severely disabled child entitlement. Child Tax Credit is taken into account for housing benefit and council tax benefit and may reduce those benefits. If you are thinking about applying for Child Tax Credit and think it may affect your existing benefits, you should consult an experienced adviser, for example, at a Citizens Advice Bureau.

How much Working Tax Credit will you get

The maximum Working Tax Credit you can get is worked out by adding together various elements depending on your circumstances. The elements are a basic element. Paid to anyone entitled to

Working Tax Credit

A second adult element a lone parent element a 30-hour element if you work 30 hours or more per week. If you are part of a couple and have children, you can add your hours together to qualify for the 30 hour element provided one of you works at least 16 hours per week. Only one 30 hour element can be paid per couple even if you both work 30 hours a week or more disability element if you are disabled, receiving certain benefits and work at least 16 hours a week. If you have a partner who is also disabled, you may qualify for two disability elements if you both work 16 hours or more a week a severe disability element. Couples may qualify for two severe disability elements if one of you works 16 hours or more a week and you are in receipt of certain benefits