What Is a Child Tax Credit in the UK?

Get help raising your family with UK Child Tax Credit.

The UK government's Child Tax Credit (CTC) scheme was introduced to help families better provide for their children. Combined with the Child Benefit scheme, UK Child Tax Credit aims to offer support to people who care for children and alleviate some of the costs associated with raising children in the UK.

History

Following the Labour government's election in 1997, the Working Families Tax Credit was introduced. In 2003, this was replaced by two separate credit schemes, the Working Tax Credit and The Child Tax Credit, which separated tax benefits for families from those on low incomes. The scheme falls under the remit of Her Majesty's Revenue and Customs Department.

About the Scheme

Make sure you claim all the help you can for your family.

The direct.gov.uk Web site states child tax credit has two separate payment elements, a per-family payment and a per-child payment. The scheme is aimed mainly at helping those families with lower incomes, which means higher earning families may only qualify for the per-family payment.

Children who Benefit

Ensure your children get the best start in life.

The Child Tax Credit scheme helps support all children in the UK up to the age of 16. According to the direct.gov.uk, it also covers children between the ages of 16 and 20 if they are full-time students or engaged in unpaid vocational training. The scheme also covers children aged 16 or 17 under certain circumstances. In order to qualify they must no longer be full-time students who are not employed or in a training scheme, but have registered with the careers service. Anyone 16 or 17 who is claiming other benefits such as job-seekers allowance or works over 24 hours a week in paid employment does not qualify.

Levels of Credit

The Child Tax Credit in the UK can help lighten the load.

The level of credit a family receives increases if the child is under the age of 1 or is disabled. The amount of money a family receives depends on the combined income of the parents. The higher a family's combined income, the less tax credits they receive.

Who is Eligible

According to information on the British Government Department of Revenue and Customs site, any resident of the UK, over the age of 16 who is responsible for one or more child in the UK can claim Child Tax Credit. UK residents can claim whether they are employed or not. The credits are also available to citizens of other EEA (European Economic Area) who work in the UK. Single parents can claim based on their individual circumstances; married couples or those in permanent stable relationships are expected to claim together.

How to Claim

To claim Child Tax Credit in the UK, fill out a claim form. More information and a form can be found at Directgov site.

References

• "Tax Avoidance--a Practical Guide for UK Residents"; Samuel Blankson; 2005
• "Alternative Tax-Benefit Strategies to Support Children in the European Union, Horacio Levy, Christine Lietz and Holly Sutherland; 200
• British Government Department of HMRC: Child Tax Credit andWorking Tax Credit
• Directgov: How to Claim Tax Credits