Are you eligible for child tax credits?

Child Tax credits are financial support from the Government designed at helping those with children, or who are responsible for children. You can receive child tax credits if you both employed or out of work. If you are employed, your wage will be increased if you are not earning enough to support your young family. Child Tax Credit is notoriously complicated at times, and there are many people left unsure as to whether they are eligible to receive the help they deserve. Here are a few basic points to ensure those that are entitled to this support, are applying for and receiving it. child counting tax credits

Age Limits

Aside from the obvious (you must have one or more children), in order to receive the benefit your child(ren) must be 16 or under and in full time education. If they are under the age of 18 but have left school, you must ensure they are registered with the career service to keep receiving the benefit.

How much am I entitled to?

Like most benefits, this very much depends on the situation and a number of factors. Depending on your income, you will qualify for either a ‘family’ child tax credit, which pays £545 to a family responsible of a minimum of one child, or a child tax credit that pays individually for each child, at £2, 780 per child. If you have a disabled child, you’re entitlement is different. If their disability qualifies you will receive £3, 140 per child. There is also another element of qualification, which is severely disabled. Recipients of this will get £1, 275 per child of financial support. All of these elements are subject to how much your household earns. here we have listed the highest possible amount for each of the elements. Earning below £16, 105 will mean you receive the full amount. Please note that when assessing your financial situation, HMRC will combine your income with that of your spouse/partner if they live with you. the taper gradually decreases with the more that you earn, but even if your total household income is relatively high, if you are paying childcare costs, you can still receive help.

How do I claim?

To apply for child tax credit you will need to fill out the form TC600, where you will need to provide information about yourself, one of the most important being your income from the previous tax year, which you will need to prove. If you’re income is likely to differ for this tax year, you will need to tell HMRC of that so you are not receiving over-payments, which is illegal, or under-payments when you are entitled to extra help. You will receive your benefits in conjunction with the tax year 6th April to the following 5th. HMRC does not need to be notified every year if your income remains the same throughout the time you are receiving the tax credits. Every year, you will receive a renewal form which will usually just include an annual review notice. Nothing needs to be done with this as HMRC are just informing you that your benefits will continue as normal into the next tax year. However, you may be asked to fill out an annual declaration form where you will confirm things like income. You will have until 31st July to do this so ensure you fill it out and send it back on time to avoid your payments being stopped.