Rt Hon Alistair Darling MP
New Tax Credits – Child Tax Credit & Working Tax Credit
9 out of 10 families with children are entitled to tax credits.
In April 2003, the Government introduced the new Child Tax Credit (CTC) and Working Tax Credit (WTC).
Many people who weren't eligible for the old Working Families Tax Credit (WFTC) or Children's Tax Credit will qualify for these new tax credits.
CTC is for people who are responsible for at least one young child or qualifying young person, for example, a student. A single person, married couple, man and woman living together as husband and wife can all apply. Couples must make a joint tax credit claim.
The CTC is not conditional on being in work and so helps families in the transition from welfare to work. It will be paid for children under 16 or 16-19 in education.
The amount you get is based on your income. It has replaced the old tax credits and benefits with a single system so all families with children with an income up to £58,000 a year (or up to £66,000 a year if there is a child under one year old) can claim in the same way.
WTC supports working people, helping to top up earnings. WTC is not dependent on having children so more low paid people will get extra help. The WTC will extend the principles of the WFTC and Disabled Person’s Tax Credit to people aged 25 and over without children or a disability.
As well as the CTC and WTC, the Government has introduced other initiatives to assist families with children. There have been record rises in child benefit and maternity allowances as well as the introduction of paternity allowances.
For More Information
To obtain further information and help you can call the “Tax Credits Helpline” 0845 300 3900. Lines are open from 8am to 8pm 7 days a week and the calls are charges are local rates.
For more information you can also visit www.taxcredits.inlandrevenue.gov.uk
Having Problems with Your Claim
If you are having problems with either you CTC or WTC and would like me to help, please contact my office on 0131 476 2552 or email: darlinga@parliment.uk .
