Child tax credits: A guide

Child tax credits can be worth thousands of pounds a year, depending on your income and how many children live with you.

Here, we explain who can benefit, how much you could claim and why it is vital to meet the July 31 renewal deadline if you are already claiming.


Can I claim child tax credits?
As long as your household income is below a certain level (details below), you can generally claim child tax credits for any child living with you between the ages of 0 and 16. Older children in certain types of education or training also qualify.

Separated or divorced parents who share the care of their children cannot both claim child tax credits though, as only one household can receive payments for each individual child.


For estranged couples who cannot decide who should receive child tax credits, the best course of action is therefore for both parties to make a claim by July 31 and let the Tax Credit Office decide who should get the money.

Otherwise, the easiest way to find out of your family is eligible is to call the Tax Credit Helpline on 0345 300 3900.

How much will I get?
Until April this year, child tax credits were available to families with household incomes of up to around £40,000.

However, since then families with one child can generally only claim if they earn £26,000 or less, while those with two children are usually only eligible if they earn less than £32,200.

Entitlements vary, and the easiest way to find out how much child tax credit you can get is to use the HM Revenue & Customs Tax credits calculator.

However, the maximum a couple with one child can receive over the course of a year is about £3,235 - made up of the so-called family element of £545 and the "child element" of £2,690, which is awarded on behalf of the individual child in question.

How do I apply?
When you have a new baby, you can start to claim child tax credits for him or her immediately. And if you have more than one baby, for example twins, you can claim for each one.

To do so, call the Tax Credit Helpline and ask for a new claim form, or for details of how to add the new child on to your existing claim.

Once you receive the form, fill it in as soon as you can as payments can only be backdated for up to a month.

What else do I need to know?
Once you are claiming, it is vital to keep the Tax Credit Office up to date with any changes to your circumstances such as a child coming to live with you or leaving home.

Otherwise, you risk missing out on your full child tax credit entitlement or being overpaid and facing the nightmare of having to repay the money at a later date.

You must therefore do everything you can to meet the renewal date of July 31 and ensure that the information you send in is accurate. Again, the Tax Credit Helpline can help you if you are unsure about anything or have not received a renewal form.

If you work, it is also worth looking into working tax credits - which are aimed at those on lower incomes too - and childcare vouchers, which can benefit people on higher incomes as long as their employers subscribe to the scheme.

More stories

• Working tax credits: a guide
• Britain could learn a lesson from French tax clamp down
• AM calls for 5p chewing gum tax