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All About Child Tax Credit

By: Paul Geraghty - Updated: 21 Jun 2018 | comments*Discuss
 
All About Child Tax Credit

Child Tax Credit is one of the benefits available to parents to help them cope with the costs associated with bringing up children. If you have children and have just been made redundant, be sure and claim it. You need all the financial help you can get. In fact, the chances are you would have been eligible for it even when you were working. But many people aren't sure what benefits they are entitled to receive. Over £4 billion of tax credit went unclaimed last year!

What is Child Tax Credit?

Child Tax Credit is a state benefit which may be paid to anyone rearing a child. It does not matter whether the parent lives alone or as part of a couple, although, where there are two parents living together, they must apply for the benefit jointly.

Child Tax credit is paid to the main carer of the children within the family and is usually paid directly into a bank account. To claim Child Tax Credit, you need to get hold of the form TC600 from the government, fill it in and send it back. The government makes two tax credits available, and claims for both are made on the same form. The other tax credit is called Working Tax Credit and is designed to supplement the incomes of those who are working in poorly paid jobs. Naturally, therefore, if you have just been made redundant, this section of the form will not apply to you.

Child Tax Credit is made up of several elements. The Family Element is only paid once to each carer, regardless of the number of children. The Child Element is paid proportionately depending on the number of children. If you have disabled children, there are also special Disability Elements for them.

Who is Eligible for Child Tax Credit?

Any parent with a child below the age of 16 may be eligible for Child Tax Credit. It may also be possible to claim for children up to the age of 19 if they are either in continuing education other than higher education or not working and not claiming benefits. Parents both in work and out of work are eligible to receive Child Tax Credit.

How much Child Tax Credit you will receive depends on the number of children you have as well as your income and that of your partner. Child Tax Credit is not intended exclusively for people on low incomes or on other benefits. Although the amount they will receive will taper off, even those earning relatively high incomes, such as £50,000 per year for example, will still receive some of the benefits of Child Tax Credit.

The amount of Child Tax Credit paid is uprated each year in line with inflation so you will need to check with the Inland Revenue to see what the latest values are. However, a rough rule of thumb is that a parent would be entitled to a maximum of around £2000 per year per child.

If any of your children are disabled or under 1 year of age, you will receive more Child Tax Credit than normal.

Child Tax Credit When Your Circumstances Change

Once you are receiving Child Tax Credit, you need to keep the government informed about changes in your personal circumstances which might affect your eligibility for benefits. For example, you would need to let Inland Revenue know if your household income changed or if your children started working on their own.

If you don’t supply the updated information in a timely fashion, it can mean that you are overpaid Child Tax Credit. When this is discovered, you will be asked to pay it back. This can be a crushing financial burden if the amount overpaid was significant.

Child Tax Credit – Conclusion

Don’t be one of the 25% of people who do not claim the tax credits to which they are entitled. If you’ve just been made redundant, every penny counts.

Please note that Child Tax Credit is currently being replaced by Universal Credit. You can usually only claim Child Tax Credit if you don’t live in a Universal Credit area. You can see more about Universal Credit and your eligibility via the gov.uk pages.

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Hi I’m currently pregnant with my 2nd child! Me and my partner don’t live together as I’m in a 2 bedroom flat and he has 2 children of his own! We are looking to move in together when our child is born! As I’m currently reviewing tax credits for one child wondering if when partner moves in and new baby arrives could I claim tax credits while on maternity leave? (SMP) would decision be based on last years joint earning before partner lived with me? Really stressing about how we are going to manage
Helpmeplease - 21-Jun-18 @ 3:32 PM
Hey.. i have a 11 month old and i have beengetting working tax as im a single mom only working 16 hours. I have to give my job up as i havent got no one to look after my daughter.. can i have some advise as i be 200 pounds short
Lucy - 8-May-18 @ 1:36 PM
Hi all, im being made redundant soon, i currently recieve child tax credits, do need inform hmrc?
Fai - 28-Apr-18 @ 11:55 AM
Bangle - Your Question:
HelloMy husband has just been made redundant, I work 28 hours a week, we have 4 children and my tax credits have been reduced today! Also working tax credit stopped! He was told he can’t have jsa and to claim universal credit which HMRC say the system can’t take more than 2 children at the moment, please can someone advise as I don’t know what to do as we’ve lost a lot of income.

Our Response:
I am very sorry to hear this. Unfortunately, there is little we can do if you have been told by DWP that your benefits are limited. I can only direct you to the Turn2Us site here , which may help you further. Changes in benefit entitlement by the government and taking away the safety net is pushing many families into poverty. I hope things manage to turn around for you soon.
RedundancyExpert - 23-Mar-18 @ 2:51 PM
Hello My husband has just been made redundant, I work 28 hours a week, we have 4 children and my tax credits have been reduced today! Also working tax credit stopped! He was told he can’t have jsa and to claim universal credit which HMRC say the system can’t take more than 2 children at the moment, please can someone advise as I don’t know what to do as we’ve lost a lot of income.
Bangle - 23-Mar-18 @ 12:57 PM
Hi, I was made redundant 10 years ago, as the company I worked for went into administration. Administrators were appointed so I never received any redundancy, until this week. I received £11.500 I am a single mum of 2 and work 16 hours a week. My question is will this affect my tax credits next year as I was going to use some of the money to pay debt and put some into my kids isa accounts that can't be touched till they are 18, they are 7 and 8 now.
Shaunamc - 21-Aug-17 @ 6:38 PM
Ziggi - Your Question:
I was made redundant in Feb this year I am 57 what do l do about my protecting my state pension and n I contributions. l have health problems l do not think l am fit to work now,hubby on eesa and pip living on bread line what should l do ?

Our Response:
Please see gov.uk link here which should help answer your question.
RedundancyExpert - 13-Jul-17 @ 10:14 AM
I was made redundant in Feb this year I am 57 what do l do about my protecting my state pension and n i contributions. l have health problems l do not think l am fit to work now,hubby on eesa and pip living on bread line what should l do ?
Ziggi - 11-Jul-17 @ 2:50 PM
I am processing sepertation. I will care my children aged 5 and 2. I didn't work last 4years was just full time mum. Could I get Childtax credit? I also received housing benefit and child benefit. Any other benefits for single parent?
Para - 31-Dec-16 @ 1:59 PM
Bec - Your Question:
My husband has been made redundant and I work 28 hrs per week. Our household income has dropped considerably overnight. When I told the tax credits office about our change in circumstances I was advised that we will not receive help this year based on our income last year/this year to date. Is this correct?

Our Response:
We can't confirm or oppose what you have been told as we are unaware of the internal administrative logistics of HMRC.
RedundancyExpert - 23-Sep-16 @ 1:54 PM
My husband has been made redundant and I work 28 hrs per week. Our household income has dropped considerably overnight. When I told the tax credits office about our change in circumstances I was advised that we will not receive help this year based on our income last year/this year to date. Is this correct?
Bec - 22-Sep-16 @ 5:08 PM
Peaches- Your Question:
Hi I have a 6 year old son but the last year he's been living with his dad so his dad is having the benefits I was wondering as I have my son 3 days and 3 nights am I entitled to any child tax or benefits please thanks

Our Response:
The parent considered as a primary carer is the parent who is allowed to claim benefits. Even if you increase the overnight stays with your child, if you are not the primary carer then you would still not be able to claim a share of the benefits. This would merely reduce the amount of child maintenance you would have to pay.
RedundancyExpert - 13-Sep-16 @ 10:35 AM
Hi I have a 6 year old son but the last year he's been living with his dad so his dad is having the benefits I was wondering as I have my son 3 days and 3 nights am I entitled to any child tax or benefits please thanks
Peaches - 12-Sep-16 @ 10:29 AM
N/A - Your Question:
HiMy partner is a widowed single mother of 2 children, she has recently been made redundant by her company.She is worrying her redundancy payment ( which is not that substantial) will effect her child tax credit / any other benefits, can you please confirm if this is the case ?Regards,T.James

Our Response:
Please see Money Advice link herewhich will give you more information.
RedundancyExpert - 18-Aug-16 @ 12:15 PM
Hi My partner is a widowed single mother of 2 children, she has recently been made redundant by her company. She is worrying her redundancy payment ( which is not that substantial) will effect her child tax credit / any other benefits, can you please confirm if this is the case ? Regards, T.James
N/A - 17-Aug-16 @ 4:19 PM
I was made redundant on the 5th of August, and rather than working my notice my (ex) boss said it's on a pay in lieu notice.I have been getting working and child tax credit as I'm a single mum with 2 children.I have never been unemployed/made redundant before so am unsure what I need to do now.I have been busy looking for work since and had hoped to have got a temporary position but that fell through so I am going to have to contact HMRC about tax credits but I also need to know what I need to do if I have to claim benefits.Do tax credits stop immediately when you advise you're out of work? Any help would be greatly appreciated.
MsMcN - 15-Aug-15 @ 8:39 AM
Hi everyone ,I'm a single mum with 3 boys age, 12 , 10 and 6.??. My eldest son is disabled and I reciece the higher rate dla and have now been awarded the higher rate dla for my youngest son as both are autistic . I know I recieve extra tax credits for my eldest son as he is classed as disabled ,just wondered if I am entitled to more tax credits for my youngest son as he is now getting dla .I wud have thought you only get extra for one child per family ! But tax credits girl said she assumed I wud be entitled to extra for my youngest son also .Confused lol .Does anyone know ? Thanks x
Lillie - 17-Jul-15 @ 6:11 PM
My parents never claimed child tax credit /working tax credit on me I'm 31at the moment when I arrived to live in London I was 14 ...was I eligable for it ? My parents were old and they didn't know about it ? Thank you .
Sarah - 20-May-15 @ 10:38 AM
@nje85 - I can only guide you ti the website Turn to You, which includes a calculator here to see if you are eligible for any other benefits. I hope this helps.
RedundancyExpert - 11-May-15 @ 1:56 PM
Hi i went on maternity leave in early jan 2015 and had my baby in feb, i tried to clain child tax credits as a couple but we were told we earned too much. All im getting is mat pay and child benefit and me and my bf are both struggling with our combined money. I dont understand why i cant get anything now, it shouldnt go on lasts yr pay when i was working and doing overtime (overtime i had to do to pay for baby stuff) it should go on what im getting now, when i go back to work in oct il be on a little less money than my mat pay. Nxt yr il be ok to get child tax credits but thats a yr away. What are mothers like me supposed to do now?! Sorry for the long rant lil
nje85 - 9-May-15 @ 3:08 PM
@Sunni - I have included a link via the Citizens Advice Bureau which tells you how redundancy can affect your benefits here. I hope this helps.
RedundancyExpert - 7-Apr-15 @ 12:58 PM
I am a single mother my daughter is 6 years old, my son is 11 months. I work in the airport as it is working shift work there is no way I can go back to work. I am considering excepting redundancy money I may recieve over £10,000 I want to no how will this affect my benefits
Sunni - 3-Apr-15 @ 11:12 PM
@Worried - I'm sorry to hear of your husband's redundancy. The best thing I can do is to direct you to the HMRC Tax Credits site which will tell you if you are eligible to claim here. I hope this helps.
RedundancyExpert - 15-Jan-15 @ 2:25 PM
My husband is about to be made redundant without any pay, in other words sacked.from 2013 t0 2014 he earned about 35,000 and I earnt 4300. Will we be able to claim tax credits.Our joint earnings for last year were too high to claim but this year we won't have that income so surely last years income is irrelevant. Thank you
Worried - 15-Jan-15 @ 1:50 PM
I have not received my usual tax credits letter since submitting my new claim in July (there were no changes, simple sign and send) and cannot get put through to a person for reassurance that I will receive money next week. Can anyone please confirm that payments are being made for August and September (the automated service tells me to call back in September as the advisors cannot help as they are taking 8 weeks to process claims at the moment) Thanking you in anticipation.
Netty - 22-Aug-14 @ 2:43 PM
I have just been issued notice of redundancy after 12 years. I am being paid redundancy pay as a lump sum and 11 weeks P.I.L.O.N. My Wife and I currently receive WTC for 3 disabled, School aged Children. Can you please advise what will happen to our Tax Credits?
Village Lad - 24-Jun-14 @ 9:01 PM
I'm 37 weeks pregnant and have a toddler. I'm being made redundant and don't want to disrupt my daughter too much she attends private nursery so I'm cutting her days down to 2 a week. Her free hrs don't start until next year so I will have to pay full price An I going to be entitled to any wt or ct credits to help? My company is paying me a lump sum of the full maternity pay: 90% wage for 6 weeks and then smp rate for the remaining 33 weeks It's very confusing I don't think I'll be eligible for anything while in the 39 weeks of maternity. Yet I wasn't having anywhere this long off from work because of financed Any help greatly appreciated!
Fabel01 - 21-Jul-13 @ 7:10 AM
Hi, my partners ex wife is claiming child tax credit for her two son's but, one of them does not live with her, he lives with his gran, which he has done for the last four years. Should it not be the gran claiming for the ctc for him? The ex wife still has him registered at her house though he live's at his gran's. Could you tell me if this is fraudulent herclaiming for thm both.
buster - 3-May-13 @ 12:53 AM
HiI have jsut been advised that in March I will be made redundant. I have a young disabled child(6) and currently receive dla WTC and CTC. I havebeen in my job for 6 years and dont know what I will do. I am a low income earner and am very worried
stewey - 19-Nov-12 @ 8:10 PM
i have been told in march my job that we will be made redundant. i have been offered a voluntary package of 6months wages paid plus my statutory redundancy pay. as a single mother on a low income i recieve child tax credit and working tax credit. i am just wanting to know in recieving this sum of roughly £4500 will this affect my benefits? thanks
dawnieb - 17-Nov-12 @ 2:31 PM
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