In April 2003 the UK government introduced two new tax credits. The Working Tax Credit and the Child Tax Credit replaced the Working Families' Tax Credit, Disabled Person's Tax Credit and Children's Tax Credit..
Working Tax Credit
The Working Tax Credit (WTC) provides extra support to working families in low-income households, including those without children. If you are responsible for a child or young person you can claim Working Tax Credit if you are aged 16 or over and work at least 16 hours a week.
Childcare Element
Included within the WTC, the childcare element provides assistance to families on lower incomes towards approved childcare costs.
The childcare element can pay up to 80p for every £1 paid out in childcare costs, up to a maximum of £175 per week for one child and £300 for two or more children. This means that you can get help with childcare costs of up to £140 (or £175 at 80p in the £1) if you have one child, or £240 (£300 at 80p in the £1) if you have two or more children.
Other Elements
Other elements, such as the lone parents element, a disability element and severe disability element can also be included depending on individual circumstances.
Child Tax Credit
Unlike the Working Tax Credit, the Child Tax Credit (CTC) is available to both working and non-working families with children. If you, or your partner, are responsible for at least one child or young person who usually lives with you then you can claim CTC.
Once again there are different elements available within the CTC depending on individual circumstances, for example the CTC includes a disabled child element.
For more information, or to make a claim, please visit the HM Revenue and Customs website at http://www.hmrc.gov.uk/menus/credits.htm or phone the tax credits helpline on 0845 300 3900 (textphone 0845 300 3909).
Other types of help
Receiving Child Tax Credit or Working Tax Credit may mean that you are also entitled to other help. The tax credit award that you get will clearly show your household income and key family details, so it makes sense for other organisations who rely on the same basic information to use your tax credits award as a link to the services they provide. In most cases however you will still need to make a separate claim.
More information can be found on the HM Revenue and Customs website at http://www.hmrc.gov.uk/