Tax credits can be worth thousands of pounds each year. Eligibility depends on your household income, but you may be surprised how much you can earn and still qualify.

Tax credits are payments from the government straight into your bank account. Many people become eligible for tax credits when they have a baby. You can even claim them if you are posted abroad.  There are two types – Child Tax Credit and Working Tax Credit – and with a new baby you might be eligible for one or both. 

If you have a new child or you are responsible for any children under 16, you could get Child Tax Credit. You can also qualify if you have children aged 16 to 19 studying in sixth form or further education college. Make sure you claim within one month of your child’s birth because payments can normally only be backdated for one month.

The benefit is applicable in England, Wales, Northern Ireland and Scotland.

Child Tax Credit is paid to help people with the costs of bringing up a child.  It is made up of various elements: a family element; a child element; and a disabled child element.  

You can normally only get the child element for up to two children. You can only get money for a third (or more) child if they:

• were born before 6 April 2017
• they qualify for an exception

Only one household can get Child Tax Credit for each child.

You don’t need to be working to claim Child Tax Credit.

Child Tax credit does not include any help with the costs of childcare. If you are working and you are on a low income, you may be entitled to Working Tax Credit and this benefit can include help with childcare costs.

How much Child Tax Credit you get depends on your income and circumstances, for example if your child is disabled.

You can’t claim tax credits and Universal Credit at the same time.

You can get Child Tax Credit if you are 16 or over.

If you are under 16 your parents, or someone who is responsible for you, could include you and your child in their own claim.

  Contact us today for further advice and assistance.