Child Tax Credit - How do I claim Child Tax Credit?

Child tax credit comprises of two important elements:

• The “family element” – a family with atleast one child is eligible and the CTC is paid to the family.
• The “child element” – this credit is paid for each child / young members in a family. The amount corresponding to the child element may be higher for children with a disability.

As part of a family element, a family can get up to £545 a year. Depending on an individual’s circumstances, they can be eligible for an extra amount above the mentioned amount. The rates for tax year 2019-2020 are:

Child Tax Credit Rates for the 2019 to 2020 Tax Year

Child tax credit needs to be renewed every year for it to continue every year. You must renew your tax credits by 31 July 2019. The Tax credit office keep the family posted on what steps they need to follow to renew the tax credit. It is obvious that a family’s circumstances can change during a fiscal year, and such information, like income changes etc., need to be conveyed to the Tax credit office by calling the child tax credit helpline 0345-300-3900. Changes in a family’s circumstances can affect the tax credit amount. For example, a family can get more support if there is a reduction in the income due to any reason, or an increase in the income can result into a lower amount. Starting April 2016, the amount by which the income can vary fell from £5,000 to £2,500. Due to the revised rates, if the income goes above £2,500 and the tax credit office is unaware about the change, the family / parents will be asked to pay back the extra amount. This extra amount will either be recovered by reducing the future tax credits or a direct payment in case the CTC will not be used in the future. On the contrary, it is advantageous if the income falls by £2,500 or more as the family will be eligible for more tax credits.

To avoid any lapse, as a best practice, the Tax credit office should be informed within 30 days of when the family receives the extra money. It becomes easy for the office to compute the tax credit adjusted and nullifies the chances of an overpayment or tax credit reversal.

Making a New Claim for Child Tax Credit

You are eligible to make a new claim for Child Tax Credit once you get severe disability premium, or got it in the earlier month and are still qualified for it.

What you’ll get

The amount that you could achieve depends on when your children has born.

If all your children were born before 6 April 2017

You are eligible to get ‘child element’ of Child Tax Credit for all of your children.

You’ll also get the basic amount, known as the ‘family element’.

If one or more of your children were born on or after 6 April 2017

You might get the benefits for up to 2 children. You can also get child element for more children in some exceptional cases.

You’ll only get the family element if at least one of your children was born before 6 April 2017.

Child Tax Credit – If you’re already claiming

The amount of child tax credit you’ll get depends on your situations. You should inform HM revenue and customs in case your situations get changed.

Conditions 1- Your claim started before 6 April 2017

• You’ll get the basic amount of Child Tax Credit, also identified as ‘family element’
• The ‘child element‘ for the children born before 6 April 2017

When you claim started on or after 6 April 2017

In general you’ll get the child element for up to 2 children. In exceptional apply you might get the same for more children.

For achieving family element at least one of your children should born before 6 April 2017

In case all your children were born before 6 April 2017

You get the child element for all your children. You’ll also achieve the basic amount, known as the ‘family element.’

Employment tribunals facilitate decision making regarding employment disputes. Employment disputes that are not resolved at the workplace or cases which have a legal binding are heard at the employment tribunals. In other words, almost all legal cases with respect to employment are heard in the employment tribunals. Although, both the employer and employee can opt for an alternative procedure to resolve the difference of opinion, a few employee matters are still addressed at an employment tribunal. It is essential for both the parties to have a carefully planned procedure that can help in preparing good evidence, making it uncomplicated to support the actions. Nowadays, the employment law interpretations are turning in favor of employees. Hence, it becomes imperative to understand how the tribunal and the systems functions. The employment tribunal addresses cases such as unjust dismissal, joblessness, unfair deduction of pay, and inequity. Apart from these, the tribunal takes care of other claims as well.

• The child or dependent ‘normally lives with the family’; or
• If the child lives with multiple families, then the responsibility shifts with the family that has the ‘main responsibility’

A family can’t get CTC for a child or young person who is:

• Aged 16 or over, and getting income support, income-based jobseeker’s stipend, inability benefit, employment allowance , support allowance, or tax credits in their own right
• Aged 16 or over, have discontinued full-time non-advanced education or permitted training, on recorded of a qualifying body, but then taking up paid work for 24 hours or more a week during the extension period of 20 week
• Serving a custodial punishment greater than 4 months made compulsory by a court

If a child is living under the terms of a residence order, or special guardianship order, or the child is adopted, the family is treated responsible for the child, even if the local authority is making a discretionary payment, because the local authority is no longer “taking care / looking after” the child.

The Child tax credit is paid by HM Revenue and can be claimed through form - TC600. The form is available from the local HM Revenue office or the child tax credit telephone number, 0345-300-3900. Couples (this includes same sex partners) ought to make a joint claim. If a family has already been claiming tax credits, they need to call the CTC helpline to update their claim.

The Main Responsibility Test

This is a test applied, when there are challenging claims. In such cases, HMRC will make the decision, if both parties involved can’t decide mutually. When deciding on main responsibility, the factors HMRC take into account include the following:

• Who the child is living with and where are the major belongings of the child kept such as clothes and toys
• Who is responsible for the daily expenses for the child such as clothes, food, books, and others
• Who is the primary contact person in case of emergency in the school, nursery or childcare provider
• Who is responsible for the health care and cleanliness of the child. This may include doctor or dentist appointments
• What is the registered address in schools, and other places
• Who has legal custody of the child

Once you get any changes in your family life you must inform the same to Child Benefit Office. Otherwise you might not get the full benefits, otherwise you could get overpayment where later you need to pay the extra money back.

If your Child’s Circumstances Change

Once your child leave approved education or training the benefits will get stops on or after 31 August of his/her 16th birthday.

Inform Child Benefit Office:

• Using the online service you should tell the Child Benefit office that your child is staying in approved education or training after the age of 16. A Government gateway user id and password is required to use the online service.
• Tell Child Benefit office about your child who has left approved education or training after the age of 16.

Tell Child Benefit office clearly once your child:

• If your child has started paid work for 24 hours a week or more.
• Once your child stays away from you either for 8 weeks in a row or more than 56 days for a period of 16 weeks.
• In case your child moves to abroad permanently or for more than 12 weeks.
• moves to or from Northern Ireland
• Once your child will be in hospital or residential care for above 12 weeks.
• dies
• changes their name
• changes their gender
• goes missing
• If your child gets married, starts forming a civil partnership or stay with a partner.
• Once your child started getting few aids like Income Support, Jobseeker’s Allowance, Universal Credit, Tax Credits or Employment and Support Allowance.
• If the child goes to jail for more than a period of 8 weeks.

For any other changes to your child’s conditions you should inform to Child Benefit Office. Include the date of the change.

If Your Family’s Circumstances Change

Once the circumstances of your family gets changed

Benefits like tax credits etc. might get affected when the conditions of your family gets changed.

You must tell the Child Benefit Office straight away if:

• Once there is a change in your bank account, name or address In case you change your gender
• a relationship ends
• Once you start a new relationship, like you’ve started staying with a new partner or you’ve remarried
• In case the parent of the child gets died
• You intend to go overseas for more than a period of 8 weeks
• You or your partner intend to move overseas permanently or for a period of over a year
• you’re a Crown servant leaving the UK for a posting abroad
• you move to or from Northern Ireland
• In case you’ve a baby, or a child comes to live with you
• When payments or assistances for a child who does not stay with you has got stopped or changed
• When you’re paid to take care a child by the local council or something similar to that.
• The status of your immigration gets changed
• In case you’ve lost the right to stay in the UK
• When you get a punishment of prison of more than a period of 8 weeks

For any other changes to your family life you must inform to the Child Benefit Office. Include the date of the change.