Tax credits

Working Tax Credit

You can claim WTC if you work at least 16 hours a week and you are: .

• a lone parent
• are treated as a disabled worker or
• are aged 60 or over

From April 2012, couples with children must normally work at least 24 hours between them, with one working at least 16 hours, to qualify for WTC.  However, some couples can continue to claim WTC if one partner works at least 16 hours  eg where the working person is disabled, and satisfies certain conditions, or is aged over 60. 

Couples can also claim WTC where one is working at least 16 hours and the non-working partner is  incapacitate (getting certain benefits due to ill health), or entitled to carer's allowance, or in hospital or in prison.

Otherwise you must be aged 25 or over and work at least 30 hours a week.
   
The rules around disability are complicated - see www.hmrc.gov.uk or seek further advice.

WTC can include extra amounts for certain childcare costs; up to 70 per cent of costs, up to £175 (£122.50) per week for one child, or £300 (£210) per week for two or more children. These are paid to the main carer alongside child tax credit.

If you are a lone parent you may qualify for help with childcare costs if you work at least 16 hours a week.  Couples must work at least 16 hours each, unless one of you works at least 16 hours and the other is: incapacitated (getting certain benefits due to ill health), or entitled to carer's allowance, or in hospital or in prison.

Child tax credit

Child tax credit (CTC) is an allowance paid to people with children on low or middle incomes, whether they are doing paid work or not. It is paid to the main carer alongside child benefit. There is no capital limit. The amount you get depends on annual income; for couples, it is the joint income that counts.

You can receive an extra credit worth up to £2,950 a year for a child who is getting DLA or is registered blind. If your child is getting the DLA highest rate care component you will also get a severely disabled child element which is worth up to another £1,190 a year. You can get these extra amounts for each child living with you who qualifies.

If you tell the Tax Credit Office (TCO) within one month of the date of the decision awarding DLA to your child, the disability elements can be backdated to the date from which the DLA is paid from. If you tell the TCO more than one month after the DLA decision date, you can only get the extra amounts backdated for a maximum of one month .

There will be no new claims for tax credits after April 2014.

How do I claim tax credits?

There is one form for both credits available from the Tax Credit Helpline on 0845 300 3900.

For more information about tax credits click on extra money for families or go to www.hmrc.gov.uk or www.cpag.org.uk