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What Is Child Tax Credit

Updated: Dec 20, 2022

The Child Tax Credit is used to help families pay for the cost of raising children. It is now being replaced by Universal Credit so only some people are still eligible for Child Tax Credit. The Child Tax Credit program is meant to assist families with the expenses of raising children. One household only gets one Child Tax Credit for each child.


What Is Child Tax Credit


There is no need to be unemployed in order to receive Child Tax Credit. However, you need to be earning below the threshold to receive it. Child Tax Credit does not offer any help to pay for the cost of childcare. If you already have tax credits and are earning a small income then you could have the right to a working Tax Credit and this benefit could include help with the cost of childcare.


You cannot claim Child Tax Credits and Universal Credits simultaneously. The Child Tax Credit program is now being changed with Universal Credit.


Please NOTE:

· This applies to England, Wales, Scotland, and Northern Ireland

· Age restrictions: You can claim Child Tax Credit if you are over the age of 16.

If you're younger than 16 your parents, or anyone who is accountable for you, could include you as well as your child in their own legal claim.


Do I Qualify For Child Tax Credit?

Child Tax Credit will be substituted by Universal Credit. It is only possible to claim Child Tax Credit if you already receive a Child Tax Credit or Working Tax Credit. If you'd like more money to assist with the cost that comes with raising children you'll be required to obtain it through Universal Credit (if you or your spouse are under retirement age) and Pension Credit (if the two of you as well as your partner are older than Pension old). You can determine if you qualify to claim Child Tax Credit by using our Benefits Calculator or by seeking assistance.


If you're in the category of Child Tax Credit and your situation remains the same, then you do not be required to apply for Universal Credit at present. The government began the process of transferring a few individuals into Universal Credit in May 2022 and plans to finish the process in March 2025.


Who Is Eligible For Child Tax Credit?

You could qualify for Child Tax Credit if you are currently on Tax Credits (Working Tax Credit or Child Tax Credit) at the moment unless you are claiming Universal Credit.

Furthermore:


* You must be 16 or over and

* You must be responsible for at least one child.


The child should be:

* Under 16, Or

* Between 16 to 20 years old and enrolled in a relevant educational institution or training.


If there is a kid between 16 and 19 that is included as a beneficiary in the Child Tax Credit claim, be sure to inform HM Revenue and Customs (HMRC) every year by the 31st of August if they are currently in the relevant educational program or training that is approved. If you fail to do so then, your child will be excluded from your tax credit claim and the amount could be reduced or even suspended.


What Will Happen With What Happens To My Child Tax Credit If I Have A New Partner?

If you have claimed tax credits as a single individual and later you have one of your partners join your family, you'll need to end your tax credits. If you wish to receive money to assist with the expenses that come with raising children you'll need to apply for Universal Credit.


Does the Child Tax Credit Continue If I Divorce My Spouse?

If you jointly filed a request for tax credit when you were a couple but when you split, you'll need to end the joint claim for tax credits. If you want to receive money to assist with the expenses of raising your children then you must apply for the money by claiming Universal Credit.


If you're the responsible person for youngsters or children born before April 6, 2017, you may be eligible for up to £3,480 in tax credits for children for your first child, and up to £2,935 per year for your children up to the time they reach 16. You can continue to claim until you turn 20 if you continue to attend an approved school.


If you have children born after April 6, 2017, you're able to receive tax credits for children in the primary or your second. You can receive £2,935 each calendar year per child. There are certain exceptions to this rule For instance when you're expecting twins or triplets. You can find the rules on GOV.UK.


It's not necessary to be in a job to qualify for tax credits for children - however, the amount you'll receive is contingent on your situation. To determine the amount you'll receive, HMRC looks at:

* your earnings from the tax year prior (what you earned in the 12 months prior to 5 April)

* How many children, or children, who are enrolled with a valid education or training, live in your home

* At the time your children of yours were born

* If one of these young children or children is handicapped


You'll never know for sure how much you'll earn as tax deductions until the claim is approved - this can take between 5 and 5 weeks. If you're over the age of 18 You can utilize the calculator for benefits from Turn2us prior to you submitting your application to determine the amount you'll be eligible for. You'll need to give information about your earnings, your working hours, and child care. If you'd rather discuss this with an advisor, get in touch with your local Citizens Advice.


Receive Payment for Child Tax Credit


When Will You Receive the Payment?

The government made a payment in September 2022. the government announced an expense of living payment to those with child tax credits. The government will provide anyone who is claiming tax credits for children the cost of the living benefit of £324. The payment will be made between November 23 until the 30th November 2022.


To qualify for this tax credit, you need to get tax credits for any period from 26 August 2022 to 25 September 2022. The additional cost of living benefit only once, even if you receive more than one benefit. In 2023, the next payments will be made from 2nd to 4rg Jan. 2023.


The tax year 2023's maximum Earned Income Tax Credit is $7,430 for taxpayers with three or more children who qualify, up from $6,935 in the tax year 2022. Revenue procedures include the table that lists the maximal EITC amount for different categories, income thresholds, and the phase-outs.

If you're still waiting for the first living cost payment and you believe you need to make contact with HMRC.


If Your Child Has A Disability

Tax credits for children are available. credits for every child or young person that you're accountable for that:

* Earns Disability Living Allowance (DLA) or Personal Independence Payment (PIP)

* Is blindly certified (or is within 28 weeks of the date of your claim)


It will cost £3,545 a year more, over the usual amount of £4,975 if they receive one of the following:

* The highest percentage in the health component DLA

* The higher cost of living portion of PIP.


What Do I Need To Do To Apply For Child Tax Credit?

If you already receive tax credits but you want to alter the amount you claim, because you're receiving Working Tax Credit and want to claim Child Tax Credit, you are able to call HM Revenue and Customs (HMRC) Tax Credits office by telephone or manage your tax credits on the internet.

* Phone: 0345 300 3900 (or the Relay service 18001 0345 3900)

• Online: Gov.UK: Manage Your Tax Credits


Be aware that your tax credit claim must be renewed every year before the 31st of July. If you don't renew your claim the tax credit payment could stop and you might be required to pay refunds for the tax credit. Check out Gov.UK How to Renew your Tax Credits


What Documents Do I Need To Be Able To Claim Child Tax Credit?

When you submit an application to claim Child Tax Credit, you might be asked to provide:

  • The national number for your insurance. If you don't have an insurance number for Your country then you should fill out the claim form in order to prevent delays

  • Evidence for your identification, such as a birth certificate or passport

  • Proof of your annual earnings such as a P60, bank statements, or pay slips.


If you're eligible to be exempt from the Two-Child Limit, you could be required to provide additional documents, like:

* Adoption certificate


* Social worker's confirmation (for the placement of kinship care)

* Support worker's statement (for children born in the aftermath of the rape).


Change in Circumstances

The Child Tax Credit can be paid on a year-by-basis, but it is crucial to inform HMRC about any changes to your situation during the year, which may impact the amount you receive. It is important to notify HMRC about certain changes within a month. Changes in circumstances should be reported to HMRC via post, telephone, or the internet.


Challenge A Child Tax Credit Decision



What Can I Do To Challenge The Validity Of A Child Tax Credit Decision?

If you do not agree with the conclusion made regarding your case, you may generally request it be reviewed. This is referred to as a "mandatory reconsideration". If you are still dissatisfied with the final decision you can make an appeal before an impartial tribunal.


The time limit is rigid, and you'll typically have 30 days to contest the decision, therefore it is essential to seek out advice and take action promptly.

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