If you’ve been stung with a huge childcare bill this half term, then you’ll appreciate getting up to 70% of that money paid back to you by way of tax credits.

Many families qualify for tax credits but don’t know they should be applying or how to apply – is yours one of them?

You could get Child Tax Credit for each child you’re responsible for if they’re:

  • aged 16 years old or less
  • are up to 20 years old and in approved education or training

Some other facts you should know

  • You don’t need to be working to claim Child Tax Credit. Yes, that’s right…
  • You get money for each child that qualifies and Child Tax Credit won’t affect your Child Benefit.

How much Child Tax Credit you get depends on your circumstances – you can use the tax credit calculator to work this out.

Child tax credit 2013-14

Household income One Child Two Children Three Children
Less than £5,000 £3,270.00 £5,995.00 £8,715.00
£5,000.00 £3,270.00 £5,995.00 £8,715.00
£8,000.00 £3,270.00 £5,995.00 £8,715.00
£10,000.00 £3,270.00 £5,995.00 £8,715.00
£15,000.00 £3,270.00 £5,995.00 £8,715.00
£20,000.00 £1,595.00 £4,315.00 £7,040.00
£25,000.00 £0.00 £2,265.00 £4,990.00
£30,000.00 £0.00 £215.00 £2,940.00
£35,000.00 £0.00 £0.00 £890.00
£40,000.00 £0.00 £0.00 £0.00
£45,000.00 £0.00 £0.00 £0.00
£50,000.00-60,000.00 £0.00 £0.00 £0.00

If you have a child aged up to one years old or with a disability or you are entitled to working tax credit as well, then you may receive more.

You can claim child tax credits if you are responsible for at least one child or young person. You don’t have to be working to claim. Child tax credits will be paid for:

  • a child until 1 September following their 16th birthday
  • a young person aged from 16 but under 20 in full-time education up to and including ‘A’ levels, NVQ level 3 or Scottish Highers or who is in approved, unwaged training
  • a young person aged 16 or 17 who has left full-time non-advanced education or training but who does not have a job or a training place and has registered with the Careers Service or Connexions Service, is not claiming income support, incapacity benefit, employment support allowance or tax credits in his or her own right and is not in full-time work of 24 hours or more a week

Child tax credits: how much will you get?
Tax credits are made up of a number of different ‘elements’ or payments. You may be eligible for just one element or for a few different elements, depending on your family circumstances.

When you put in your tax credits claim, the tax credit office will first work out the maximum amount of tax credits you are eligible for based on your family circumstances and then whether any amount of your tax credits award needs to be reduced because of your income. The higher your income, the less tax credits you are likely to get.

Changes are to come
Tax Credits are due to be replaced by Universal Credit. Transitional arrangements will apply from 2014 onwards. Full details have yet to be announced.

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