Child Tax Credits

Explaining the UK Child Tax Credit system

Getting involved with many taxes issues is not a joke. Yet, you have to keen with more reading and comprehension for endless time. The Child Tax Credit is the helping hand the Her Majesty Revenue and Customs (HMRC) lends to people with children, no matter what their employment status is. You are automatically eligible if your pay is very low and you have at least one child to care for. You can get money for each and every child of yours. And even if you have a normal or good income you may be able to get child tax credit.
You must be at least 16 to get child credit. This means a child under 16, or a young person up to the age of 19 who is in full-time education up to A level or equivalent, or on certain approved training courses. You may also get Child Tax Credit for a young person who has been accepted on one of these courses. You can also get Child Tax Credit for a young person aged fewer than 18 who have registered with the Careers Service, if they have left school within the last 20 weeks.

It also depends on your income and other circumstances. People with over £ 50,000 per annum income range have been able to get it. However the income of both the parents (if they live together) is added up to reach any conclusion). Please note that all figures are used gross (before any deduction) including savings income.

Some of your income will not be taken into account when your Child Tax Credit is being worked out. Child Benefit, maintenance payments, Maternity Allowance will be disregarded together with most Statutory Maternity Pay, Statutory Paternity Pay and Statutory Adoption Pay.

If in a sad case, the child dies, you can keep on getting the credit for at most as 8 months, or to the time when the child would have been 20 on whichever comes first basis.
The maximum amount that you can claim depends on various factors as listed below.



Maximum amount of Child Tax Credit from 6 April 08

Family element


Higher family element (if family contains child under one)


Child element:


For each child


For each disabled child


For each severely disabled child


Applying for Child Tax Credits

To apply for Child Tax Credit ask for you first claim Form TC600. This is the same form for you if you want to apply for the working tax credit too. Answer all the questions in the best manner possible or call in at the following helpline 0845 300 3900 (text phone 0845 300 3909).

The form will mainly contain all queries about your income. It comes with handy and helpful notes to make the whole process quite easier and understandable.

You may also need to present evidence of your current circumstances such as statements and documentations about income or savings, and the national insurance number of both you and your partner. You will have to apply for a national insurance number in case you don't have one.

You can also claim tax credit for past periods for which you had not applies before. This is known as back-dating. This period is about 3 months long. You must mention your interest in getting the back dated tax credit on the form that you fill.

Remember, hiding, misstating and misrepresenting any important information is fraudulent and may invoke a penalty.

After you qualify for it, Child tax credit is paid directly into the main carer's bank account of building society interest account.

Entitlement to Child Tax Credits

You get the tax credit for the whole tax year together i.e. from the end of April of one year to the start of March of the next year. During this period, any change of circumstances must immediately be notified to the HMRC (Her Majesty Revenue and Customs). Failure to do so may result in under payment or even over payment, which you will have to claim and pay back to the HMRC, respectively. In some cases you may have to end the reward and resart it, in others a simple recalculation is all that is needed.

Any decision regarding this matter will have to be explained by the HMRC if you ask for an explanation. You also have the right to ask the case to be taken in for reconsideration or you can appeal out against any HRMC ruling within a set time period of 30 days.

Even if you are not challenging a decision or appealing or asking for an explanation, but you were not satisfied with the quality of any service rendered by the HMRC, you can complain about it to the related department.

HMRC does not discriminate on the basis of cast, color, creed, race, sex and religion. If unfortunately this has happened to you, then you the right to complain about it.
If you are not happy with a Child Tax Credit decision or you want to make a complaint you can also consult an experienced adviser, for example, at a Citizens Advice Bureau.
Being on Child Tax Credit may also give you other help. For example, you may be entitled to health benefits, including free prescriptions. You may also be able get help with the costs of a new baby from a Sure Start maternity grant, help with the costs of a funeral from a funeral payment or free school meals. If you are pregnant or bringing up a young child, you may be entitled to free vitamins and vouchers to help with the cost of milk, fruit and vegetables. Whether or not you can get this help will depend on your income, and whether you also get Working Tax Credit.


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