Thursday, 25 December 2014

Who is eligible to claim child tax credit in the UK

The Truth About Retirement Plans and IRAsChild tax credit is offered to people from the United Kingdom and those working in the UK from the EEA (European Economic Area). The credit exists to help support and maintain the economic wellbeing of family life. Recent changes in the UK Budget of 2014 have changed certain requirements in relation to this benefit. Countless sums of money remains left unclaimed each year, as people are unaware of their entitlements. You need to ascertain if you’re eligible to claim child tax credit benefit. Providing for you and your family remains an essential skill in this day-and-age.

Child tax credit is available to those people who are either working or not working. The payment is initiated through HMRC (Her Majesty’s Revenue and Customs). The amount of benefit received is relative to your income, however even a full-time salary allows access to this benefit. You can claim child tax credit for each child you are responsible for.

You must be over 16 years old and responsible for one or more children. The definition of a child is under 16 years of age, or alternatively a young person under 20 years of age if in education, up-to an A Level equivalent. Some training courses will also still allow you to claim child tax credits for your child.
The amount of credit received is dependent on a combined family salary and personal circumstances, like interest on savings and property. However, even if you earn a gross salary of £40,000, you still have potential to claim.

Two types of payment exist: a family element, and a child element. A family element normally consists of a single payment of £545 as from the 6th of April 2011. A payment is made to each child of £2,555. For disabled children a credit of £2,880 is rewarded with an additional £1,130 for a severely disabled child.

Additional claimant information

• Adoptive parents and foster parents can also claim child tax credits.
• Only one household can claim if the child lives in two different locations,
• If you are a resident of an EEA working in the UK, and your child is in another EEA country, you may still have an entitlement to claim.

To find out if you are entitled for tax credit simply telephone the Tax Credit Helpline on 0845 300 3900 to check eligibility. Forms are only available by dialling his number. However the form is known as a TC600.
This tax credit remains a viable way to top up your family’s income. During hard times the extra money may prove to be beneficial to you and your family, helping secure your sense of financial wellbeing.