Introduction
There are two tax credits - Working Tax Credit (WTC) - a means-tested tax credit for working people on low incomes, and Child Tax Credit (CTC) - a means-tested tax credit for people with children. Both tax credits are paid by the Revenue and are claimed on the same form - TC600. This is available from your local Revenue office or the Tax Credits Helpline, Tel: 0845 300 3900 (Textphone: 0845 300 3909). Couples (this includes same sex partners) must make a joint claim.
Working Tax Credit (WTC)
You qualify for WTC if you, or your partner if you have one, are working for 16 hours a week or more and have a dependent child. This means that you have a child of 16 years of age, or under 20 years of age and in certain types of education or training.
WTC is also for:
- some people without children on a low wage;
- people with a disability working at least 16 hours a week;
- people over 50 who have recently returned to work after a period of time on benefits;
- people over 25 working at least 30 hours a week.
WTC can include help towards certain 'approved' childcare costs. Childcare costs can only be included for:
- lone parents who are working at least 16 hours a week; or
- couples who are both working 16 hours; or
- where one partner works 16 hours and the other is incapacitated or in prison.
We produce a factsheet on 'Finding and paying for childcare' available free from our helpline.
Child Tax Credit (CTC)
Anyone with a dependent child can claim CTC. You can apply whether you work or not and it is paid on top of Child Benefit. You could get extra CTC if you have a child with a disability who gets Disability Living Allowance (DLA) or who is registered blind.
The amount of tax credits you get is usually based on your annual taxable income. If you have a partner, your joint income is taken into account. Unlike most other means-tested benefits there is no limit on how much capital or savings you can have.
Contact a Family publishes a factsheet 'The tax credits guide' which includes a 'ready reckoner' to help you assess your tax credit entitlement.
People in work could also get other benefits, including help with rent and council tax if your income and savings are low enough.
If you need more information
The helpline team can put you in touch with benefits and tax credits specialists who are able to advise and calculate entitlements.
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