Child Tax Credit

Child Tax Credit (CTC) is a means tested payment for families with dependant children. Entitlement to Child Tax Credit is dependant on your circumstances and it doesn’t matter whether or not anyone in the family is working in order to qualify and receive it.

Child Tax Credit is classified as a family benefit and must be available to workers in the UK regardless of residence. Therefore a frontier worker living in the Republic of Ireland and working in Northern Ireland is eligible to apply provided they meet the other qualifying criteria.

You can get Child Tax Credit for:
• a child until 1st September following his or her 16th birthday, or
• a young person between the ages of 16 and 19 who:
- is in full-time education, up to and including 'A 'levels, NVQ level 3
- has left full-time education but does not have a job or a training place and has registered with the Careers Service
- is not claiming Income Support or tax credits in his or her own right
- is not serving a custodial sentence of four months or more imposed by a court
- has not been placed with you for fostering.
Child Tax Credit is made up of two elements:

• The family element. This is paid to any family responsible for at least one child. The family element can be higher if a child is aged under the age of one.
• The child element. This is paid for each child or young person in the family. The child element may be higher if a child has a disability.
 
Calculating Child Tax Credit is very complicated. As a rough guide, however, families on incomes of up to £58,000 a year (or £66,000 a year if there is at least one child who is less than a year old) can benefit.

To make a claim for Child Tax Credit you need to complete an application form which is available by telephoning the HMRC Tax Credits Helpline on 0845 300 3900.

It is important to note that if your circumstances change during the course of a tax credit award, you must inform HM Revenue & Customs of any change as it may impact on what you can be paid. Otherwise you may be paid too much and then would have to pay it back.

© Northern Ireland Association of Citizens Advice Bureaux (NIACAB) 2008

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