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Child Tax Credit is a form of financial assistance from the Government, and it is usually paid to claimants every four weeks. In most cases, Child Tax Credit has been replaced by Universal Credit. But depending on personal circumstances, some people are still able to make a new claim for the benefit. Read on to find out more about Child Tax Credit.
How much is Child Tax Credit?
The basic amount of Child Tax Credit is known as the ‘family element’, which amounts to up to £545 per year.
For each child, payments are up to £2,830 per year in what is called the ‘child element’.
For each disabled child, claimants could receive up to £3,415 in addition to the child element.
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For each severely disabled child, Child Tax Credit claimants could receive up to £1,385 in addition to the child element and the disabled child element.
For claims which started before April 6, 2017, claimants get the family element as well as the child element for children born before this date.
Child Tax Credit claimants who started their claims after this date usually only get the child element for up to two children, but exceptions can apply.
Claimants can only get the family element if at least one of their children was born before April 6, 2017.
In most cases, Child Tax Credit has now been replaced by Universal Credit, and only those who get or are entitled to the severe disability premium can make a new claim for Child Tax Credit.
Those who got or were entitled to the severe disability premium in the last month, and who are still eligible for it, may be able to make a new claim for the tax credits too.
People who have reached State Pension age cannot claim Child Tax Credit.
Citizens Advice explain: “If you’ve reached your State Pension age, you can’t make a new claim for Child Tax Credits. You should check if you can get Pension Credit.
“If you get Pension Credit, you’ll receive extra payment for each child you’re responsible for.”
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When does Child Tax Credit stop?
Child Tax Credit can end when a child turns 16, but in some circumstances claims can continue until the child turns 20.
The Government guidance states: “Child Tax Credit usually stops on August 31 after your child turns 16 but can continue for children under 20 in approved education, training or registered with a careers service.”
The Government guidance states claimants must tell HMRC if their child turns 16 and stays in approved education or training, if they start or leave approved education or training, or if they join or leave a careers service.
Child Tax Credit claimants must also tell HMRC if their child starts getting benefits themselves, or if they leave approved education or training and work at least 24 paid hours a week.
HMRC must also be notified if the claimant’s child gets married, forms a civil partnership or starts to live with their partner.
Child Tax Credit claimants must also notify HMRC if their child turns 18 or 19 and stays in approved education or training, and HMRC should be told as soon as possible to make sure the right amount of tax credit is being paid.
‘Approved education’ is defined as full-time, and can include courses such as A-levels or NVQs and vocational qualifications up to level 3.
‘Approved training’ is defined as unpaid, and can include schemes such as Foundation Apprenticeships or Traineeships in Wales, or other schemes in Scotland and Northern Ireland.
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