Tax Credits

9 out of 10 families with children are entitled to tax credits. But you don't need to have children to qualify.  There are two types of tax credits you could apply for: Child Tax Credits and Working Tax Credits.

Child Tax Credit

This is for families with at least one child. It is made up of the following elements:

• A family element that is payable to any family responsible for a child.  It is paid at a higher rate to families with at least one child under the age of one.  This is known as the baby element.
• A child element for each qualifying child you are responsible for. This is paid at a higher rate if the child has a disability and at an enhanced rate for a child with a severe disability. This is known as the disabled child element.

You cannot include a child or young person that is in receipt of Incapacity Benefit in their own right, on a claim for tax credits.

Working Tax Credit

This is a tax credit for people who are in paid work. You may be eligible if:

• you are a single person
• you are a married couple living together
• you are a man and woman living together as if you were married
• you are in paid work (including working as a self-employed person) for the required number of hours.

Note - The amount you receive will depend on your annual income, and you must be 16 or over to be able to claim for tax credits.

Elements of Working Tax Credit

• A basic adult element which is paid to you if you meet the above criteria.
• An extra element which is paid to single parents and couples.
• An extra element which is paid if you and your partner, if you have one, work a total of 30 hours or more a week.
• An extra element which is paid if you (or your partner) are working and have a disability.
• An extra element which is paid if you (or your partner) are working and have a severe disability
• An extra element for people aged 50 or over who have just returned to work after a period on benefit.
• A childcare element which is paid to help households who are working and have to spend money on childcare.

To find out more about Tax Credits visit,

• Understanding tax credits (external link)
• Working Tax Credit (external link)
• Child Tax Credit (external link)
• Check eligibility for tax credits (external link)
• Claiming tax credits (external link)
• Renewing your tax credits award (external link)
• Appealing against a tax credit decision (external link)
• Change in family or income circumstance (external link)
• What to do if your tax credit claim is checked (external link)

 

To find out whether you may be eligible, visit the Inland Revenue Tax Credits website. (external link)