Child Tax Credit and Working Tax Credit

Updated May 2008

Child Tax Credit is a means-tested allowance that is paid to parents and carers of children or some young people who are still in education. If you or your family have gross income of less than £58,000 a year and meet the other qualifying conditions, you will be eligible for some award. In some circumstances, people with income over £58,000 may also be entitled to some award.


Working Tax Credit is a means-tested allowance for people who are in paid employment and who meet certain other conditions, based on income and circumstances.


If you are a member of a couple you will need to make a joint claim with your partner. If you and your partner have income below a certain level and meet certain other conditions, you may be entitled to Child Tax Credit and/or Working Tax Credit. The amount you receive depends on how much money you have coming into your household each year. If you have any savings, they will not affect your claim. However, if you receive interest from your savings this will be counted as income and may affect the amount you receive.


Child Tax Credit and Working Tax Credit are paid by the government but are processed by the Inland Revenue.


Child Tax Credit can be paid if you or your partner:-

• are aged 16 or over; and
• are responsible for at least one child. This means a child aged under 16 or a qualifying young person up to the age of 19 who is in full-time education, or aged under 18 and finished full time education in the last 20 weeks and who has registered with the Careers service; and
• have gross income below £50,000 a year (over £50,000 and up to £58,000 the amounts reduce).
  

Get FREE child savings brochures here.