Money from the taxman

Child Tax Credit

More good news! Many parents are eligible for Child Tax Credit payments each month, even if they are higher-rate taxpayers. And this is in addition to any Child Benefit you receive.

If you are receiving benefits such as Income Support or Income-based Jobseeker’s Allowance, you are entitled to the maximum amount of Child Tax Credit for your children.

What you need to qualify

Families with children qualify for Child Tax Credit if their annual income is no more than £58,175 a year (for 2008/09) (up to £66,350 if you have a child under one). This is regardless of whether you’re working or not. It’s usually paid directly to the main carer and, if you have a child under one, you’ll receive a little more.

What it’s worth

The amount you receive varies depending on factors such as the number of children, whether they have any disabilities and how much you earn. For more detailed information see the money, tax and benefits section of www.direct.gov.uk.

It’s important to apply as soon after your child’s birth as you can, as any claim can only be backdated by up to three months.

Working Tax Credit

Working Tax Credit was created to provide a little extra help for working families on lower incomes. In fact, you don’t have to have children to claim it, as you’ll see below. However, you do have to be working or on maternity leave from paid employment.

It will be paid directly into your bank, building society or Post Office® account, and what’s more, if you are a parent it can also help with the cost of registered childcare.

What you need to qualify

If you are a parent, you can claim from the age of 16 provided you work at least 16 hours a week. If you’re on maternity leave, you’ll be treated as though you’re working, as long as you were working at least 16 hours a week before your leave began.