Benefits including Help for Working Parents
Child Tax Credit and Working Tax Credit
Tax credits are payments from the government to help with everyday costs. If you're responsible for at least one child or young person who normally lives with you, you may be eligible for Child Tax Credit. If you work, but earn low wages, you may be eligible for Working Tax Credit.
What is a tax credit?
A tax credit isn't a tax - it's money that you receive regularly. And it isn't deducted from your tax bill either - in fact you can get it even if you don't pay tax. Tax credits are paid into your bank, building society, Post Office® or National Savings account that accepts Direct Payment.
Child Tax Credit
Nine out of ten families with children qualify. How much you get depends on things like:
- how many children or qualifying young people live with you
- if any child or young person is disabled
- your income
You don't have to be a parent either - anyone who's mainly responsible for a child can claim. If you share responsibility with someone else whom you live with as if you were married or civil partners, you must claim together whether you're married or civil partners or not.
If you share responsibility with someone else who doesn't live with you, and the children or young people also live with them for part of the time, you need to decide between you who has main responsibility. Only the family with main responsibility can claim Child Tax Credit.
Working Tax Credit
If you're in work but on low pay, you can apply for Working Tax Credit to top up your earnings. You can claim this whether you're employed or self-employed and you may get extra if:
- you're a parent or responsible for one or more children or young people
- you pay for childcare
- you are disabled
- you're aged 50 or over
How to claim
You can order a claim pack over the phone by calling the Tax Credits Helpline on 0845 3003900.
Lines are open every day (except Christmas Day, Boxing Day, New Year's Day and Easter Sunday) from 8am to 8pm.
Source: HM Revenue & Customs October 2007
Child Benefit
Child Benefit is a tax-free monthly payment to anyone bringing up a child or young person. It is not affected by income or savings so most people who are bringing up a child or young person qualify for it.
Additional qualifying conditions apply once a child reaches 16 years of age.
If you're entitled to Child Benefit for a child or young person that is not your own, you may also be entitled to Guardian’s Allowance for them if both of their parents have died or in some circumstances where only one parent has died.
To speak to someone directly about Child Benefit call 0845 302 1444
Source: HMRC: Child Benefit October 2007
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Last updated : 16.03.2010, 13:34:37