What are Child Tax Credits?
Child Tax Credits are a form of financial support provided by the UK government to help families with the costs of raising children. Their main purpose is to assist low to moderate-income families in managing everyday expenses such as food, clothing, and childcare. This benefit is designed to ensure that children in eligible families have access to the essentials they need as they grow.
The amount you receive through Child Tax Credits depends on your household income and specific family circumstances, such as the number of children you have and whether any of your children have disabilities. Generally, the lower your income, the higher the support you may be entitled to. This support is particularly important for families who might otherwise struggle to cover child-related costs.
Child Tax Credits are part of a wider network of government assistance aimed at supporting families. Alongside other benefits like Child Benefit and Working Tax Credit, they form a key part of the UK’s approach to helping parents manage the financial demands of raising children. For a comprehensive overview of how Child Tax Credits fit into the broader system of family support, you can visit Help if You Have Children.
Eligibility for Child Tax Credits and the rules around payments are set out in law, including the Income Tax Act 2007, Section 7, which outlines the legal framework governing this benefit. For detailed guidance on who can claim, how much you might get, and the application process, the government provides a full Child Tax Credit overview.
If you’re exploring support for your family, understanding Child Tax Credits is a good starting point. Be sure to check the latest guidance and consider how this benefit works alongside other forms of assistance available to families in the UK.
Who Can Get Child Tax Credits?
Who Can Get Child Tax Credits?
Child Tax Credits are designed to help families with the costs of raising children. Whether you can claim depends on several key factors, including your income, family circumstances, and where you live.
Income and Family Circumstances
Eligibility for Child Tax Credits is primarily based on your household income and the number of children you are responsible for. Generally, the lower your income, the more likely you are to qualify for support. If you have a higher income, the amount you can receive reduces and may eventually stop altogether. The specific income thresholds can be complex, as they take into account your total household income, benefits received, and whether you or your partner work.
You can usually claim Child Tax Credits if you are responsible for at least one child or young person who normally lives with you. The definition of "responsible" means you have the main care for the child, which can include biological children, adopted children, stepchildren, or children you are fostering.
How the Number of Children Affects Your Claim
The amount you receive increases with each child you are responsible for. There is a basic amount (known as the "family element") and additional amounts for each child (the "child element"). If you have more than two children, only some children may be counted, due to the government’s "two-child limit" policy introduced in April 2017. However, exceptions apply in certain circumstances, such as for multiple births or adopted children.
If your child is disabled, you may receive extra support. The payment is higher if your child is registered as disabled or severely disabled.
Residency and Basic Requirements
To qualify, you must usually live in the UK. You also need to be at least 16 years old and not be subject to immigration control (unless you are a sponsored immigrant). If you and a partner live together, you must make a joint claim.
For more details about who administers Child Tax Credits and the latest eligibility rules, see HM Revenue and Customs (HMRC).
Changes in Income or Family Situation
Your entitlement to Child Tax Credits can change if your circumstances change. Common changes include:
A change in household income (for example, if you or your partner start or stop working)
The number of children you are responsible for changes (such as a new baby or an older child leaving home)
Changes in your relationship status (such as getting married, moving in with a partner, or separating)
Moving in or out of the UK
It’s important to report any changes to HMRC as soon as possible. Not doing so may result in overpayments, which you might have to repay, or underpayments, meaning you miss out on support.
Important Note
Child Tax Credits are being replaced by Universal Credit for most new claimants. If you are already receiving Child Tax Credits, you can continue to do so until you are moved to Universal Credit or until the benefit ends. No new claims for Child Tax Credits are being accepted, except in limited circumstances.
For a full overview of the scheme, including how much you could get and the latest updates, visit the HM Revenue and Customs (HMRC) website. For a detailed breakdown of income limits and examples, see the income thresholds guide from Which?.
How to Apply for Child Tax Credits
Applying for Child Tax Credits involves several important steps, and it’s essential to gather the right information before you start. Below, you’ll find a step-by-step guide to the process, details on where and how you can apply, what documents you’ll need, and what to do if your circumstances change after your claim.
Step-by-Step Overview of the Application Process
Check Your Eligibility
Before you apply, make sure you meet the eligibility criteria for Child Tax Credits. Generally, you must be responsible for at least one child under 16 (or under 20 if they’re in approved education or training). You must also meet certain income and residency requirements.Gather Necessary Information
Collect all the documents and details you’ll need for your application (see the list below).Choose How to Apply
The main ways to apply are by phone or by completing a paper form. The government no longer accepts new claims for Child Tax Credits online. However, you can find guidance about the application process on the Child Tax Credit application process page.Complete and Submit Your Application
If you’re eligible to claim, you’ll need to contact HM Revenue and Customs (HMRC) to request a claim form. Fill out the form carefully with all required information and send it back as instructed.Wait for a Decision
HMRC will process your claim and let you know the outcome. If your claim is approved, you’ll receive a notice explaining your payments.Report Any Changes in Circumstances
After you’ve applied, it’s important to keep HMRC updated about any changes that could affect your claim.
Where and How to Apply
By Phone:
Most new claims must be started by calling the HMRC Tax Credits helpline. This is the quickest way to get a claim form and ask any questions about your eligibility.By Paper Form:
Once you’ve spoken to HMRC, they’ll send you a claim form to complete and return by post.Online Application:
While you cannot submit a new claim for Child Tax Credits online, you can find helpful information about the online application process and what to expect on the MoneyHelper website.
For detailed instructions and the latest updates, always check the official Child Tax Credit application process page.
Documents and Information Needed to Apply
When you apply, you’ll need to provide:
Personal details: National Insurance number, date of birth, and address for you and your partner (if you have one).
Children’s details: Names, dates of birth, and Child Benefit numbers (if you have them).
Income information: Details of your income for the previous tax year, including payslips, P60s, or self-employment accounts.
Childcare costs: If you pay for registered childcare, you’ll need to provide the provider’s details and evidence of payments.
Bank details: For payments to be made directly into your account.
Having these documents ready will help your application go smoothly and reduce delays.
Reporting Changes in Circumstances
After your claim is in place, you must tell HMRC if there are any changes that could affect your Child Tax Credits. Common examples include:
Changes to your household (such as moving in with a partner or separation)
Changes in your income or employment
A child leaving full-time education or training
Changes in childcare arrangements
Reporting changes promptly is important to avoid overpayments or underpayments, which can lead to future repayments or loss of entitlement.
You can report changes by calling the Tax Credits helpline or updating your details by post. For more information on what changes you need to report and how to do it, visit the Child Tax Credit application process page.
Applying for Child Tax Credits can seem complicated, but following these steps and making sure you have the right information will help. If you’re unsure about any part of the process or need more guidance, explore the resources linked above for further support.
How Much Will You Get?
How Much Will You Get?
The amount you receive in Child Tax Credits depends mainly on your household income and the number of children you are responsible for. The government sets out specific rates and rules for calculating your entitlement, as detailed in the Tax Credits Act 2002 and updated each tax year by HM Revenue & Customs (HMRC).
How Payments Are Calculated
Child Tax Credits are made up of different elements. The main components are:
The Family Element: A basic amount, usually paid if you are responsible for at least one child.
The Child Element: An additional amount for each child you are responsible for.
The Disabled Child Element: Extra payments if your child is disabled or severely disabled.
For the 2024/25 tax year, the standard rates are:
Family element: up to £545 per year (this is only paid if you claimed before 6 April 2017).
Child element: up to £3,455 per child, per year.
Disabled child element: up to £3,905 per year (additional to the child element).
Severely disabled child element: up to £1,575 per year (additional to the above).
Income and Tapering
Your total award is calculated by adding up all the elements you qualify for. However, if your annual household income is above a certain threshold (currently £18,725), your award will be reduced (or “tapered”) at a rate of 41p for every £1 over the threshold. This means that the higher your income, the less you receive in Child Tax Credits.
Number of Children
The more children you are responsible for, the higher your potential award. However, since April 2017, the “two-child limit” applies. This means you can usually only claim the child element for up to two children, unless exceptions apply (for example, for multiple births or adoption).
Payment Frequency and Method
Child Tax Credits are paid directly into your bank, building society, or Post Office account. Payments are usually made every four weeks, but you can request weekly payments if you are a single parent or your household is on a low income.
Changes in Income or Circumstances
Your Child Tax Credit payments can change if your income or family situation changes. For example, if you start earning more, have another child, or your child leaves full-time education, you must report these changes to HMRC as soon as possible. Failing to do so could mean you are overpaid and may have to repay money later.
Are Child Tax Credits Taxable?
Child Tax Credits are completely tax-free. This means they do not count as taxable income, and you do not need to include them on your tax return.
Practical Example
Suppose you have two children and a household income of £15,000 a year. You could receive the full child element for both children. If your income rises to £20,000, your entitlement would be reduced according to the tapering rules. If you have a disabled child, you may receive additional support through the disabled child elements.
Key Takeaway
The exact amount you receive depends on your circumstances and can change from year to year. Always keep HMRC updated with any changes to your income or family situation to ensure you receive the correct amount.
Child Tax Credits and Other Benefits
Child Tax Credits and Other Benefits
Understanding how Child Tax Credits interact with other benefits can help you make the most of the support available for your family. Here’s how Child Tax Credits fit alongside other key benefits, including Child Benefit, Working Tax Credit, and housing assistance.
Child Tax Credits and Child Benefit: What’s the Difference?
Both Child Tax Credits and Child Benefit are government benefits designed to help with the costs of raising children, but they serve different purposes and have different eligibility rules:
Child Benefit is available to anyone responsible for a child under 16 (or under 20 if they stay in approved education or training), regardless of income or employment status. It is a universal benefit, though higher earners may be subject to the High Income Child Benefit Charge.
Child Tax Credits are means-tested and depend on your household income and circumstances. They are intended to provide extra financial help for families on lower incomes.
For a detailed comparison of the two benefits, including who can claim and how payments work, see the official Child Benefit guide.
How Working Tax Credit Complements Child Tax Credits
If you are in paid work but on a low income, you might also qualify for Working Tax Credit. While Child Tax Credits are aimed at supporting families with children, Working Tax Credit helps people in work who are on a low income, whether or not they have children.
Many families receive both Child Tax Credits and Working Tax Credit at the same time. The amount you receive from each will depend on your income, hours worked, and family circumstances. To find out more about eligibility and how the two benefits work together, visit the Working Tax Credit page from Citizens Advice.
Housing Assistance for Families Receiving Child Tax Credits
If you’re getting Child Tax Credits and need help with housing costs, you may be eligible for additional support. Families on a low income can apply for housing assistance, which may include Housing Benefit (if you’re not on Universal Credit) or support with social housing applications.
Receiving Child Tax Credits can strengthen your case when applying for housing assistance, as it demonstrates your financial need. This support can help cover rent payments, prevent homelessness, or provide access to more affordable social housing options.
Practical Advice
Always report changes in your income, employment, or family circumstances to HMRC, as this can affect your benefit entitlements.
You can receive Child Tax Credits alongside Child Benefit and Working Tax Credit, provided you meet the eligibility criteria for each.
If you’re struggling with housing costs, explore housing assistance options early to avoid financial difficulties.
By understanding how these benefits work together, you can ensure your family receives the full support available. For further details on specific benefits or if you need tailored advice, follow the links above to learn more.
Other Support for Families with Children
When raising a family, financial support like Child Tax Credits is just one part of the help available. Parents in the UK also have important legal rights to take time off work when they have a baby, adopt a child, or need to care for their children. Understanding these leave entitlements can help you plan both your finances and your family life.
Maternity, Paternity, and Parental Leave Rights
If you are expecting a child or adopting, you may be entitled to take maternity, paternity, or parental leave. These rights are protected by law and are designed to give parents time to bond with their child and manage the early stages of family life without worrying about losing their job.
Maternity leave allows mothers to take time off before and after the birth or adoption of a child. The Maternity Leave Regulations 1999 set out the rules for how much leave you can take and your rights during this period.
Paternity leave gives fathers, partners, and some adopters the right to take time off following the birth or adoption of a child. The Paternity Leave Regulations 2002 explain who qualifies and how much leave is available.
Parental leave provides additional unpaid time off for parents to care for their children, usually up to a certain number of weeks per child.
These leave entitlements are separate from financial benefits like Child Tax Credits, but they work together to support families. For example, you might use maternity or paternity leave to spend crucial early months with your child, while also receiving Child Tax Credits or other benefits to help with living costs.
Making the Most of Support
Taking the time to understand your rights to maternity, paternity, and parental leave can make a real difference to your family’s wellbeing and financial security. Knowing what you are entitled to means you can plan ahead and make informed decisions about work, childcare, and income.
If you’re unsure about how leave rights and Child Tax Credits fit together, or want to know more about eligibility and how to apply, it’s a good idea to read further or seek advice. Exploring your options ensures you get the full support you’re entitled to during this important stage of family life.
Frequently Asked Questions about Child Tax Credits
Frequently Asked Questions about Child Tax Credits
Who is eligible for Child Tax Credits?
Child Tax Credits are designed to help families with the cost of raising children. You can claim if you are responsible for at least one child or qualifying young person who usually lives with you. Generally, a child is someone under 16, or under 20 if they are in approved education or training. Eligibility also depends on your income and personal circumstances. The rules are set out in the Tax Credits Act 2002 and are administered by HM Revenue & Customs (HMRC).
Can I still apply for Child Tax Credits?
Most people can no longer make a new claim for Child Tax Credits. Since the introduction of Universal Credit, new applications are usually directed there instead. However, if you are already receiving Child Tax Credits, you can continue to get them as long as you remain eligible and keep HMRC informed of any changes in your circumstances.
How much will I receive?
The amount you get depends on your household income, the number of children you have, and whether any of your children are disabled. There is a ‘family element’ and a ‘child element’ for each child, with extra support for children with disabilities. Payments are means-tested, so as your income increases, the amount you receive may decrease or stop altogether.
How do I apply for Child Tax Credits?
If you are already receiving tax credits, you can manage your claim by contacting HMRC. If you are not currently receiving them, you will usually need to apply for Universal Credit instead. When applying, you will need to provide details about your income, your partner’s income (if you have one), and information about your children.
What should I do if my circumstances change?
You must report any changes in your circumstances to HMRC as soon as possible. This includes changes such as a child leaving full-time education, changes in income, moving in with a partner, or a child moving out. Failing to report changes can result in overpayments, which HMRC may ask you to repay, or underpayments, which could mean you miss out on support.
How do Child Tax Credits interact with other benefits?
Child Tax Credits are separate from Child Benefit, and you can usually claim both. However, receiving Child Tax Credits may affect the amount of other benefits you receive, such as Housing Benefit or Working Tax Credit. If you move to Universal Credit, your Child Tax Credits will stop, and your support will be calculated under the new system.
What happens if I’m overpaid or underpaid?
If HMRC finds that you have been paid too much, you will usually need to pay the money back. This can happen if your circumstances change and you do not report it promptly. If you think you have been underpaid, contact HMRC as soon as possible to have your claim reviewed.
Are there time limits for reporting changes?
Yes, you must report most changes within one month. Prompt reporting helps ensure your payments are correct and reduces the risk of overpayments or penalties.
What if my child has a disability?
If your child is disabled, you may be eligible for additional support through the ‘disability element’ or ‘severely disabled element’ of Child Tax Credits. You will need to provide evidence of their disability, such as proof of Disability Living Allowance.
Can both parents claim for the same child?
No, only one household can claim Child Tax Credits for a child. If parents live separately, the person with main responsibility – usually the one the child lives with most of the time – should make the claim.
What should I do if I disagree with a decision?
If you believe HMRC has made a mistake with your Child Tax Credits, you have the right to ask for a mandatory reconsideration. This means HMRC will review your case. If you are still unhappy with the outcome, you can appeal to an independent tribunal.
These answers are based on the latest UK tax credit regulations and guidance. If you need further advice or your situation is complex, consider seeking independent support or contacting HMRC directly.
Where to Get More Help
If you need further help understanding Child Tax Credits or managing your claim, there are several places you can turn for support and advice.
First, the main source of information is HM Revenue and Customs (HMRC), the government department responsible for tax credits. You can contact HMRC directly if you have questions about your eligibility, how to apply, or if you need to update your details. Their advisors can also help if you think there has been a mistake with your payments or if your circumstances change – for example, if your income changes, your child leaves full-time education, or you move house. It’s important to report any changes promptly to avoid overpayments or underpayments.
If you prefer face-to-face or local support, many advice centres and charities offer free guidance. Citizens Advice is a well-known organisation that can help with questions about Child Tax Credits, how to challenge a decision, or what to do if you’re struggling financially. Local councils may also have welfare rights advisors who are familiar with the rules set out in the Tax Credits Act 2002 and subsequent amendments. They can explain how your benefits might be affected by changes in your family or work situation.
For official rules and detailed guidance, the government’s website publishes up-to-date information on Child Tax Credits, including eligibility criteria, payment rates, and how to report changes. This resource is especially useful if you want to check the latest legal requirements or see examples of how tax credits are calculated.
If you’re worried about an overpayment or facing a demand to repay money, you can ask HMRC for an explanation or seek advice from an independent advisor. In some cases, you may be able to challenge a decision or ask for a mandatory reconsideration.
Remember, Child Tax Credits are being replaced by Universal Credit for most new claims, so it’s important to get advice about which benefit you should apply for if your circumstances change. If you’re already receiving Child Tax Credits, you’ll usually continue to do so unless you have a significant change in your situation.
Getting the right advice can help you make the most of your entitlements and avoid common problems, such as missing out on payments or facing unexpected bills. If you’re unsure about anything, don’t hesitate to reach out for help – support is available whether you’re making a new claim, managing an existing one, or dealing with changes to your benefits.
