Child tax credit
Child tax credit combines all income related support for children and will be paid direct to the main carer's bank or building society account.
The child tax credit is made up of two elements: a family element and child elements. A higher family element is paid to families with at least one child under one year old.
Who is eligible?
Child tax credit can be claimed by people who are responsible for:
- at least one person aged under 16 or until the first September after that child's 16th birthday; or
- at least one person aged 16, 17 or 18 who is in full time education, normally studying at school or college for at least 12 hours a week for a qualification, at or below NVQ Level 3, A Level or Scottish Highers.
In addition, to qualify for tax credits you must be aged 16 or over and usually live in the United Kingdom. You may also qualify if you do not live in the UK but you are:
- a citizen of another country in the European Economic Area (EEA) and you work in the United Kingdom, or
- a crown servant posted overseas, or
- a citizen of a country in the European Economic Area (including the UK) living abroad and you receive a UK state pension or contributions-based jobseeker's allowance.
What is it worth?
It is estimated that up to 90% of households with children will qualify for the child tax credit. However, not everyone will receive the same amount.
The minimum tax credit (for families with an income under £50,000) is currently £545. The maximum tax credit varies depending on household circumstances, from just over £5,000 if you have one child and no childcare costs to over £13,000 for those with higher expenses and more children. Refer to the child tax credit rates for more information.
To discover whether you qualify for tax credits, complete the questionnaire at the HM Revenue & Customs tax credits web site.
This page was last reviewed on 03 April 2006. The information may not reflect changes in legislation made after this date.
This is only a guide to your tax position and should not be relied on in place of professional accounting or tax advice. Any calculated figures are illustrative and are based on the data you provided.
