HMRC has published an updated version of Child Tax Credit and Working Tax Credit leaflet (WTC2). The guide explains in detail what the two credits are, who is eligible and how to claim.
The Child Tax Credit has been designed to help families with children and credits. As a rough guide the credits are available to families with one child and an income of up to £26,000 and to families with two children and a household income of up £32,900. The credit is designed to help support children until the age of between 16 and 20 depending on their education profile. Child Tax Credit is paid directly to the main carer in the family either weekly or monthly and is usually paid directly to a designated bank or building society account
The Working Tax Credit assists taxpayers on low incomes by providing top-up payments. This credit is available to employees and the self-employed on low incomes whether they have children or not. The limits are higher for couples and those with children. The credit is paid directly to a designated bank or building society account.
The Government had been planning large cuts to tax credits but the plans were put into disarray when the House of Lords voted to delay the cuts last month. The Chancellor is expected to announce some revised plans in the autumn statement on 25 November.
Source: HM Revenue & Customs
