Updated tax credits notice
HMRC have published an updated version of their Child Tax Credit and Working Tax Credit leaflet. The new document is available online and will be published in print versions shortly.
The Child Tax Credit is designed to help families with children. Credits are available to families with an income of up to £58,000 a year (£66,000 where the family includes a baby under one). The credit is meant to help support children and continues until they reach an 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. ‘Low income’ for this purpose includes the self employed and partnerships whose business makes a loss.
For example, a single person without children, aged over 25 and with earnings of less than £13,000 would be eligible for some credit. The limits are higher for couples and those with children. The credit is also paid directly to a designated bank or building society account.