What Is Child Tax Credit-Do you Qualify?|DNS Accountants

by Vidit Agarwal Marketing Director

Child Tax Credit Overview:

A child tax credit is a tax credit paid by HMRC to the families with children to help them with the cost of raising a child. A family doesn’t need to be employed to claim Child Tax Credit (CTC). If you are self-employed or working for someone else, you may also be entitled to working tax credit. You can claim child tax credit only for the children you are responsible for. If your child has a disability you can claim additional child tax credit such as Disability Living Allowance (DLA), Personal Independence Payment (PIP). The amount of the child tax credit you can get depends on:

Your income and circumstances
When your children were born (before or after 6^th April)
how many children you are responsible for

Child Tax Rates For 2018/19 Are As Follows:

The basic amount or Family Element i.e. a family with at least one child can get up to £545
For each child or Child Element i.e. credit paid for each child- up to £2,780
For each disabled child or disabled child element- up to £3,275 (on top of the child element)
For each severely disabled child or severely disabled child element- up to £1,325 (in addition to the child element and the disabled child element)

What Is The Income Threshold To Get Child Tax Credit For The Year 2018/19?

If a family annual household income is £16,105 or below, the family can get maximum tax credit from each Child Tax Credit (CTC) element, if they qualify and if you earn above this, the amount of tax credit you can get also get reduced.

Check out yearly household income limit for 2018/19

How To Claim Child Tax Credit?

If you are eligible for child tax credit and you are making a new claim, it is important that you complete the child tax credit application form-TC600 and you will be required to give some details such as income, from the previous year, national insurance, child benefits numbers. You can also apply online for child tax credit.in case of a new claim; it can take up to 5 weeks to process. You can also claim child tax credit through phone, HMRC telephone and text phone number is 0345 300 3900 and for outside UK +44 2890 538 192. Opening and closing time of HMRC helpline: on Monday to Friday, 8am to 8pm. On Saturday, 8am to 4pm. On Sunday, 9am to 5pm.

In case of an issue regarding the child tax credit procedure or any other taxation problems contact DNS Accountants or Book a free consultation.