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Child Tax Credit & Working Tax Credit

Are you missing out on financial help with your childcare costs?

 HM Revenue and Customs administer the Child Tax Credit and Working Tax Credit.  They no longer produce printed information leaflets.  The information below is a brief overview of the credits, where to obtain more information and Inland Revenue contact details.  The type of help you can receive will depend on your individual circumstances and financial situation.

Introduction 

Child Tax Credit (CTC) supports families with children.  You can claim whether or not you are in work.  The amount you get depends on how many children you’ve got and whether you’re making a new claim or already claiming.  
If you’re making a new claim CTC is being replaced by Universal Credit.

The amount you get depends on when your children were born:

If all your children were born before 6 April 2017 you could get the ‘child element’ of CTC for all your children.  You will also get the basic amount, known as the ‘family element’.

If one or more of your children were born on or after 6 April 2017 you could get the child element of CTC for up to 2 children.  You’ll only get the family element if at least one of your children was born before 6 April 2017. 

Child Tax Credit rates for 2018/2019 tax year:

Child Element:  up to £2,780 for each child

Family Element: up to £545

There are more elements for disabled children. 

Child Tax Credit won’t affect your Child Benefit. 

You must wait 3 months before claiming Child Tax Credit if you arrived in the UK from the EEA on or after 1 July 2014 and don’t work. 

Working Tax Credit (WTC) supports working people (employed or self-employed) on low incomes by topping up earnings.  There’s no set limit for income because it depends on your circumstances (and those of your partner).

If you’re making a new claim WTC is being replaced by Universal Credit. 

Eligibility 

You could get Working Tax Credit if either of the following applies:

  • you’re aged from 16 to 24 and have a child or a qualifying disability
  • you’re 25 or over, with or without children

You must:

  • work a certain number of hours a week
  • get paid for the work you do (or expect to)
  • have an income below a certain level

 

Circumstance

Hours a week

Aged 25 to 59

At least 30 hours

Aged 60 or over

At least 16 hours

Disabled

At least 16 hours

Single with 1 or more children

At least 16 hours

Couple with 1 or more children

Usually, at least 24 hours between you (with 1 of you working at least 16 hours)

The basic amount of WTC is up to £1,960 a year, you could get more (or less) depending on your circumstances and income. 

Help with childcare costs

If you work, you could get extra tax credits to help with your childcare costs. You can make your claim 7 days before you start paying for childcare, and only for the amounts that are actually paid by you.

You must use ‘approved childcare’ to qualify for help. You can’t claim for childcare provided by your partner or paid for by the free early education and childcare scheme. (A2YO, NEG or 30hrs).  You can claim for childcare provided by a relative if they’re a registered childminder and they care for your child outside your home.

You could get help with your childcare costs with Universal Credit instead of Tax Credits.

You can’t claim Tax Credits and Universal Credit at the same time. 

How to Claim  

To claim tax credits you have to fill in a claim form.

You can order a tax credits claim pack from the Tax Credit Helpline or online. 

Contact Details 

Tax Credit Helpline:           0345 300 3900

Textphone:                       0345 300 3909

Or online:                           https://www.gov.uk/child-tax-credit/how-to-claim

 

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