Child Tax Credit (CTC) is a tax credit designed to help families with dependent children. If you are on a low or middle income and have only modest savings you are likely to be entitled.
You can claim for any children under 16 and for children up to 20 if they are in full time education, studying up to A level or an equivalent standard, or if they are in unpaid, work-based training, as long as you are responsible for them and they usually live with you. This includes children who may be away at school in term times.
The Disabled Child Element of Child Tax Credit
If you have a child who gets any rate of DLA, whether this is for care or mobility, any CTC you get will include an extra Disabled Child Element. If your child gets DLA at the high rate for personal care, any CTC will also include an additional Severe Disabled Child Element. These credits are in addition to all the tax credits available to other families.
CTC is more generous than other benefits. Maintenance payments, fostering and adoption allowances and most other benefits are disregarded as income when HMRC calculate your entitlement to tax credits. An exception is Carer’s Allowance, so be sure to tell HMRC if you get this. Student loans are disregarded, as are any student grants relating to dependent children, books, travel or equipment.
If you’ve only just found out about Tax Credits and your child has been getting DLA for some time, it’s worth telling HMRC that you may have been entitled to Tax Credits and giving details. CTC has a little more flexibility than other benefits to look retrospectively at your entitlement.
If your child’s entitlement to DLA changes, this may make a significant difference to your CTC award, so it’s in your interests to tell HMRC about this as soon as possible.
How do I get Child Tax Credit?
Telephone HMRC Tax Credit help line on 0345 300 3900.