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Tax Credits

6 February 2009 No Comment

Claiming the Child tax credit is a must for those of you that qualify.

If you care for any child that is under the age of 16  (under 20 if they’re in full-time education) then you may be eligible to claim Child Tax Credit. This is a government initiative to assist with, what in the Modern day, the considerable cost of looking after a youngster.

To see what you qualify for visit the link below:

http://www.hmrc.gov.uk/taxcredits/do-you-qualify.htm

When to claim?

You can claim tax credits for a child who lives with you, up to 31 August after their 16th birthday. This is extended though if your child is aged between 16 and 19 and they fall into one of the following categories:

  • Your child is still in full-time education. This includes ‘A’ levels, NVQ level 3 or Scottish Highers.
  • They are in an approved training scheme such as, Entry to Employment, Get ready for work or Skillbuild.

Furthermore, an exception to the guidelines above is that if your child is between 16 and 17, and they’re not in full-time education or approved training, you can still claim tax credits for them so long as they they have signed up with the either the Careers Service, Connexions Service or Training and Employment Agency. Claiming under this condition though can only have a maximum duration of 20 weeks.

What about adoptive parents and foster parents?

If you’re adopting or fostering a child you can claim tax credits for them as long as you’re not getting any money from your local authority or Health and Social Services Board. If you are getting money from one of these organisations then it may still be possible to claim a tax credit but you would be recommended to seek further advice from the Tax office. ( Link to Tax office provided below ).

What happens in more complex living arrangements such as if your child lives with more than one person?

If your child lives with you for part of the time and then spends the remainder of time with someone else, only one person can claim a tax credit for this child. It would usually be the case that the Child Tax Credit is paid directly to the person who is deemed to be the child’s main carer. Deciding who claims the tax credit for the child is down to the parties involved however if agreement can’t be reached then the Tax Credit Office will decide after consulting with both of you.

For more information about Tax credits see the government guidance by clicking below:

http://www.hmrc.gov.uk/taxcredits/children-childcare.htm

Superdads also recommends using the link below for finding out what other types of benefits and grants may be available to you.

http://www.entitledto.com
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