Tax Credits
Money, tax and benefits

Understanding tax credits

Tax credits are payments from the government to help with everyday costs.
If you're responsible for at least one child or young person who normally
lives with you, you may be eligible for Child Tax Credit. If you work, but
earn low wages, you may be eligible for Working Tax Credit.

What is a tax credit?

A tax credit isn't a tax - it's money that you receive regularly. And it isn't
deducted from your tax bill either - in fact you can get it even if you don't
pay tax.
Tax credits are paid into your bank, building society, Post Office® or
National Savings account that accepts Direct Payment.

Child Tax Credit

Nine out of ten families with children qualify. How much you get depends on
things like:
how many children or qualifying young people live with you
if any child or young person is disabled
your income
You don't have to be a parent either - anyone who's mainly responsible for a
child can claim. If you share responsibility with someone else whom you live
with as if you were married or civil partners, you must claim together
whether you're married or civil partners or not.
If you share responsibility with someone else who doesn't live with you, and
the children or young people also live with them for part of the time, you
need to decide between you who has main responsibility. Only the family
with main responsibility can claim Child Tax Credit.

Check if you qualify for Child Tax Credit and how much you might get
Working Tax Credit

If you're in work but on low pay, you can apply for Working Tax Credit to
top up your earnings. You can claim this whether you're employed or self-
employed and you may get extra if:
  • you're a parent or responsible for one or more children or young people

  • you pay for childcare
  • you are disabled
  • you're aged 50 or over

Check if you qualify for Working Tax Credit and how much you might get

How to claim

Post and phone: 0845 300 3900
You can:
claim Child Tax Credit or Working Tax Credit by post
report a change of circumstance by phone or post
renew your tax credits award by phone or post (once you get the form sent
to you in April or May)