Katy Clark MP

It is now more important than ever to ensure that you are claiming all the tax credits you are entitled to. Tax credits are payments made to give extra financial support for everyday costs. The amounts change depending on lifestyle (e.g. changes to salary, working hours, childcare costs).

There are two types of tax credits:

1) Child Tax Credits (CTC): Created to support families or individuals with responsibility for looking after a child. Payments are made in addition to Child Benefit. You do not have to be working in order to be entitled to CTC. They may still be entitled to claim even if they only have part-time care of a child. However, CTC can be paid to only one of the parents, not both. It is usually paid to the parent who is in receipt of the Child Benefit.

2) Working Tax Credits (WTC): Additional financial support for workers on a low income (even without children).

If you think you are entitled to tax credits that you are not getting please ring the tax credit hotline on 0845 300 3900 or visit their website by clicking here.

CHILD TAX CREDITS

Child Tax Credit is for people who are responsible for at least one child or qualifying young person. Child Tax Credit is paid direct to the person who is mainly responsible for caring for the child or children. If you are a lone parent you will receive the payment. Child Tax Credit can be paid to workers who continue to pay UK National Insurance Contributions when posted from the UK to work in another country in the European Economic Area.

WORKING TAX CREDITS

Working Tax Credit is for people who are employed or self-employed (either on their own or in a partnership), who

• usually work 16 hours or more a week
• are paid for that work, and
• expect to work for at least 4 weeks

and who are

• aged 16 or over and responsible for at least one child, or
• aged 16 or over and disabled, or
• aged 25 or over and usually work at least 30 hours a week

Working Tax Credit is paid to the person who is working 16 hours or more a week.

As part of Working Tax Credit you may qualify for help towards the costs of childcare. If you receive the childcare element of Working Tax Credit, this will always be paid direct to the person who is mainly responsible for caring for the child or children, alongside payments of Child Tax Credit.

COUPLES

Couples must make a joint tax credits claim. If you are part of a couple, you cannot decide to claim as a single person. If you are in a couple and if both of you are working 16 hours or more a week, you must choose which one of you will receive it. You cannot receive Working Tax Credit if you are not working.

If you think you are entitled to tax credits that you are not getting please ring the tax credit hotline on 0845 300 3900 or visit their website by clicking here.