Tax Credits

Tax Credits are means-tested benefits for workers and families on a low income. They are administered and paid by HM Revenue and Customs (HMRC) but are being replaced by Universal Credit (UC). However, you can still make an award for one if you already receive the other – for example, claim Child Tax Credit if you receive Working Tax Credit. Tax Credit renewals will continue until such time as you stop being entitled, or you are required to make a claim for UC.

Child Tax Credit is paid to parents, whether working or not, who are responsible for a child aged up to 16, or up to 19 if they are in approved education. It can include extra amounts if the child has a disability. If your children were born on or after 6 April 2017, the Two-Child Limit will apply.

Working Tax Credit is for adults who are working at least 16 hours per week but whose income is low. It includes extra amounts for people working more than 30 hours per week, or those with a disability. You can also claim for childcare costs.

Awards of Tax Credits are calculated on a yearly cycle, and how much you receive will depend on a comparison of your reported income over the previous tax year with your expected income in the current tax year. Nevertheless, it is still important to inform HMRC about changes that occur during your award.

More information about Tax Credits and how to contact HMRC about a Tax Credits claim can be accessed at gov.uk:

• Child Tax Credit
• Working Tax Credit
• Tax credits: your payment dates
• Report changes that affect your tax credits
• Tax credits if you have a baby
• How to renew tax credits
• Tax credits overpayments
• Tax credits: general enquiries
• Tax credits: appeals and complaints