LRD guides and handbook April 2016

State benefits and tax credits 2016

Chapter 4

Child Tax Credit


[ch 4: pages 73]

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


• under 16; or


• under 20 and in approved education or training.


You do not need to be working to claim Child Tax Credit. You get money for each child who qualifies and Child Tax Credit won’t affect your Child Benefit. Only one household can get Child Tax Credit for a child.


How much can you get?


You could get a basic amount and extra on top of this (known as “elements”). How much you get depends on income and other circumstances (for example, if your child is disabled). The basic “family” amount is up to £545 a year (see boxes below). There is no single limit for income because it depends on your circumstances (and those of your partner). 


Child Tax Credit rates 2016-17

£ per year
Family element (frozen) £545
Child or young person £2,780
Disabled child £3,140
Severely disabled child £1,275

Childcare element of Working Tax Credit per week 2016-17

£ per week
Maximum eligible cost for one child £175
Maximum eligible cost for two or more children £300
Percentage of eligible costs covered 70%

If your circumstances change


Your Tax Credits can go up or down if your family or work life change. You must report these changes to the Tax Credit Office. For example, if your child leaves home or your income changes.


Eligibility depends on:


• the child’s age;


• if you’re responsible for the child.


To qualify the child must be:


• under 16 — you can claim up until 31 August after their 16th birthday;


• under 20 — if they are in approved education or training.


You are usually responsible for a child if they:


• live with you all the time;


• they normally live with you and you are the main carer;


• they keep their toys and clothes at your home;


• you pay for their meals and give them pocket money;


• they live elsewhere in Europe but are financially dependent on you.


If your child is disabled


You may get extra Child Tax Credits if:


• the child gets Disability Living Allowance (DLA), Personal Independence Payment (PIP) or Armed Forces Independence Payment;


• the child is registered blind (or was within 28 weeks of your Tax Credits claim).


You still qualify if DLA or PIP stops because the child goes into hospital.


How to claim


Contact the Tax Credit Helpline for a claim form (tel: 0345 300 3900; textphone: 0345 300 3909). It can take up to two weeks to arrive.


If you are already claiming tax credits you don’t need a claim form, you can call the helpline to update your claim. Claims have to be renewed once a year.