Child Tax Credit

Tax Credits are fiendishly complicated, so Dad Info is here to make things clear and simple. Here's our guide to Child Tax Credit - which will reduce your tax bill if you're eligible.

In fact, they're so complex, it’s estimated that although nine out of ten families with children qualify, only 80 per cent of those eligible apply for them.

Who is eligible?

All families with children can claim Child Tax Credit if their income is no more than £58,175 a year (up to £66,350 if you have a child under one).

You can claim if the child or young person is:

• aged 16 and under, up to 31 August after their 16th birthday
• aged under 19, or under 20 in certain circumstances, if they're still in full time education 
• Working Tax Credit  

What if I'm separated?

Unfortunately, the Government will only give the Child Tax Credit to one parent - the person with main responsibility for the child or young person. This means the resident parent. It tends to be whoever the Child Benefit is paid to.

• Separation  

How much is it worth?

Child Tax Credit is made up of two elements : Family and Child. The family element is paid to all families with children and is worth up to £545 a year. The child element is paid for each child and is worth up to £1845 a year.

• Financial help from the UK Government

How do I claim?

You can claim Child Tax Credit by completing a form and popping it in the post. You can get the form, in a claiming pack, by calling the Tax Credits helpline on 0845 300 3900, textphone 0845 300 3909.

When calling, you'll need your National Insurance Number, which you can get from your employer if you've forgotten it.

How is it paid?

Tax Credits are paid directly into the bank account of the main carer for all the children in the family.

Yes, it's true that many families don't have a 'main carer' anymore and yes, it's true that if you're separated, and even if you look after the children 3.49 days a week and the child's mother has them 3.51 days a week, she is classified as the main carer and receives 100 per cent of the tax credit. In reality, if there's a dispute about who should receive the tax credit, it will generally go to whoever receives the Child Benefit.

Author

Tom Beardshaw is a co-founder and the Publisher at Dad Info, creating the website and the things we print. He lives and works in Cardiff raising his son and supporting his other lad in South Africa. Find his blog at www.tombeardshaw.com.

Your thoughts

What do you think Child Tax Credit? What do you think of all the mistakes that led to the government asking families to pay them back money? How would you change the system if you could? Use the comments system below to share your thoughts.