Kids Academy Childcare
Welcome to Kids Academy
Childcare Enquiry / Book a Show Round Kids Academy Brochure - Download now Recruitment - Apply online now

Child Tax Credit

Summary

It’s very common for people to assume that they will not be eligible for benefits over and above the Child Benefit payment that everyone is entitled to. However, our experience tells us differently. In fact the vast majority of UK families are eligible for additional financial assistance. The most commonly misunderstood one is Child Tax Credits from the Government. This is tax-free income for households with children. These are made up of a number of elements and are worth different amounts as they are means-tested based on your circumstances.

How much could I receive?

You can claim Child Tax Credits whether you’re in work or not. You are eligible as long as your family income is no more than:

Around £58,000 a year if your children are over one year old; or
Around £66,000 a year if you have a baby under one year old.

There is a family element that most families get and a child element payable for each child, and you might receive extra if your child has a disability.

JUNE 2010 BUDGET CHANGES

FAMILIES EARNING MORE THAN £40,000 PER YEAR WILL NOT GET CHILD TAX CREDIT FROM APRIL 2011

JUNE 2010 BUDGET CHANGES

THE CHILD ELEMENT OF CHILD TAX CREDIT WILL INCREASE BY £150 ABOVE INDEXATION IN APRIL 2011 AND £60 ABOVE INDEXATION IN APRIL 2012

What are the different elements of Child Tax Credit and how much are they?

Maximum award for 2009 -2010

Family Tax Credit - The basic element for families responsible for one or more children the amount is £545 per year

Family Tax Credit - For families responsible for one or more children under the age of one the amount is £545 per year. Please note that only one payment may be available regardless of how many children under the age of one

Child Disability Tax Credit - For each child or young person you are responsible for the amount is £2,235 per year.
This is one payment for each child you are responsible for if you are receiving Disability Living Allowance for the child, or the child is registered blind or has been taken off the blind register in the 28 weeks before the date of claim. £2,670 per year (an additional £1,075 is awarded if your child is severley disabled)

All of the above are maximum payments and your eligibility for them is means tested. Therefore the more you earn the less you will receive and vice versa.

Source : HMRC www.hmrc.gov.uk/taxcredits/payments-worked-out.htm

How much could I get?

The main variables to determine this are:

If you are single or in a couple
How many hours you (and your partner) work in a week
How many children you have
If any of them are less then 12 months old
The cost of your childcare
Your income

Example 1

The Jones’ both have full-time jobs. Between them, they earn approximately £30,000 a year. They have three kids, all of whom are older than one year old. They have no childcare costs so in total they get about £49 a week in Child Tax Credits.

If their income went up to say £48,000 a year, their tax credit entitlement would reduce and they’d only receive about £10 a week instead.

Example 2

Tricia is 28, unmarried and not living with a partner. She has one child under the age of one and earns £10,000 a year working as a teaching assistant. She should receive about £64 a week in Child Tax Credits (and may also receive working tax credits).

Working tax credit - childcare element

You may be able to get Tax Credits to help with the cost of childcare while you are working. You’ll need to be working at least 16 hours a week, although it’s possible you could still qualify as long as you were working the same amount before you went on maternity leave.

How much could I receive?
You can actually receive up to 80% of the cost of your childcare, up to a maximum of £175 a week, if you have one child. This increases to £300 a week if you have two or more children. The exact amount depends on your income, the lower it is the more you’ll receive. However, if you claim Childcare Vouchers from your employer the value of the vouchers you receive will be taken off the amount you can claim through Working Tax Credits. E.g. if you claim the full £243 per month vouchers from your employer, the monthly amount of childcare help you can claim through Working Tax Credits reduces by this amount.

It’s useful to work out which will give you the greater benefits as it’s not always beneficial to take vouchers. As a general rule if you earn under £25k per year you’re probably better only using tax credits, but if you earn over £35k per year you’re probably better off taking vouchers.

What type of childcare qualifies?

They must be a Government registered or approved childcare provider and could be a childminder or nursery.

Child Benefit

Once your baby has arrived, you can claim Child Benefit, which is the only State benefit that’s given to every family in the UK, regardless of your individual circumstances. You’ll receive weekly payments of £20 for your oldest child and £13.20 for each of your other children.

To claim it, you will need to have your child’s original birth certificate and a Child Benefit claim form. You should find one of these in the ‘Bounty Pack’ that every new mother receives when they’re in hospital or you can download a form from www.hmrc.gov.uk/childbenefit/forms.htm.

JUNE 2010 BUDGET CHANGES
ALL CHILD BENEFIT RATES WILL STAY THE SAME FOR THE NEXT 3 YEARS.

Health in Pregnancy Grant

JUNE 2010 BUDGET CHANGES
THIS GRANT WILL BE ABOLISHED FROM APRIL 2011
From April 2009 the Government introduced a new one-off tax-free payment of £190 if you’re pregnant. This money is available to help meet extra costs during your third trimester. Everyone eligible will get the same amount and the payment is not dependant upon your income. It will also be paid on top of any other benefits or tax credits you may get.

You will be eligible for the grant if:

You are 25 weeks pregnant or more
Your expected date of delivery was on or after 6 April 2009
You have been given health advice from a midwife or doctor to help you and your unborn baby stay healthy during pregnancy
You are present, ‘ordinarily resident’ and have a ‘right to reside’ in the UK.

You can make a claim for the grant if your expected delivery date was on or after 6 April 2009.

How to claim

Your midwife or doctor will give you a Health in Pregnancy Grant claim form at your next ante-natal appointment after your 25th week of pregnancy. They will need to complete, sign and date their parts of the form before giving it to you. If they do not have a claim form, please call the Health in Pregnancy Grant Helpline on 0845 366 7885.

Once you have received your form from your midwife or doctor you need to send the completed claim form to the Health in Pregnancy Grant Office within 31 days of your midwife or doctor signing the form. If the Health in Pregnancy Grant Office receives your form any later than 31 days after your midwife or doctor has signed it, then you may miss out on your payment.

If you need help to remember when to claim, you can get a free reminder when you’re 25 weeks pregnant by registering on the Directgov website or by texting your due date to 83377. For example if you’re due to give birth on 1 May 2009

Free dental care & prescriptions

You’ll qualify for free NHS dental treatment while you’re pregnant and for 12 months after your child is born.

Plus children up to the age of 18 years old also receive free dental care. Most dentists will give you a form to fill in but take your MATB1 certificate or Maternity Exemption Certificate with you.

You’ll also be entitled to free NHS prescriptions when you’re pregnant, and for 12 months after your child is born. And children up to the age of 16 automatically receive free prescriptions. Just fill in the back of the prescription form to claim

Parents on Low Income

JUNE 2010 BUDGET CHANGES

FROM APRIL 2011 GRANT WILL BE RESTRICTRED TO YOUR 1ST CHILD ONLY

If you’re managing on any of the following, you could qualify for a Sure Start Maternity Grant of £500 to help you with essential items for the baby:

Income Support
Jobseeker’s Allowance
Pension Credit
Child Tax Credits above the family element
Working Tax Credits where a disability element is included.

To claim this, contact your local Jobcentre Plus or the Department of Social Security in Northern Ireland to receive form SF100 (Sure Start).

And if your income is less than £16,040 a year, you may be able to receive Healthy Start Vouchers to help you claim free milk, fresh fruit and vegetables. The vouchers are worth £3.10 per week if you’re pregnant, £6.20 per week for each baby under one or £3.10 per child over one and under four. To find out if you’re eligible to claim, visit www.healthystart.nhs.uk