Child Tax Credits Explained

There are many parents in the United Kingdom today who are claiming Child Tax credits to help supplement their income if they are in low paid jobs. Likewise there are just as many who are not claiming these tax credits so it is worth while examining what they are and how you, as a parent, may be entitled to them if you are not already claiming them.

What are Child Tax Credits?

Child Tax Credits is financial assistance given to anyone caring or responsible for a child while they are working for more than sixteen hours a week. These credits are designed to help bolster an otherwise low income and are also awarded as a means of helping to pay for child care.

Tax credits are awarded to any British citizen who is over the age of 16 and is responsible for a child and can also be paid to anyone over the age of 25 who works for more than 30 hours a week and is responsible for the care of a child.

Claiming Child Tax Credit

You can, as we have already mentioned, claim for Child Tax Credits if you are looking after or are responsible for a child and are working. You can also apply for Child Tax Credits if you are disabled or are unemployed.

You can apply for Child Tax Credit by downloading the forms from Her Majesty’s Customs and Revenue (HMRC) website. You can also claim tax credits if you are not married but are legally registered as the child’s parents – as in a common law relationship or indeed Civil Partnership (same sex marriage or relationship).

Do I Qualify for Child Tax Credits?

If you fall into any of the categories we have mentioned about be it a single parent, a guardian legally registered to look after a child or children, or a member of a civil partnership then you may be eligible for tax credits. You may also be eligible if you are disabled or are unemployed and claiming Income Support or Income Based Job Seekers Allowance. Again for more information you should contact Her Majesty’s Customs and Revenue (HMCR) and ask for further information.

Childcare

Child Tax Credits are also applicable if you have to pay for childcare – particularly if you have a child who is still in their infancy while you are at work. If this is the case then the individual – who must be registered with the local authority as a child minder – will be paid directly for the provision of care for your child or children whilst you are at work. It should again be stressed that the individual looking after your children must be registered to do so with your local authority.

Council Tax Benefit

If you are on a low income and are receiving tax credits – or claiming child tax credits – you may also be eligible for assistance with your council tax. As most of us are aware council tax is steadily on the increase and in some districts more than in others so assistance with this is vital if you are on a low income. Again you should contact your local Customs and Revenue office for further details or visit their website.

Further Information

It is important that if you are currently not in receipt of such tax credits and have not set about claiming child tax credits that you enquire as to your eligibility as soon as you can. In some cases Customs and Revenue (HMCR) may be able to back date the payments if you are eligible but you should be aware that if you are also entitled to council tax relief this will not be back dated but you will notice a huge difference in how much you have to pay come the next financial year.

As always if you are unsure as to the validity of your claim you should contact either Customs and Revenue (HMCR) or visit your local Citizens Advice Bureau.