Child Tax Credit

Help with everyday costs

Nine out of ten families with children are eligible for tax credits.

Child Tax Credit

This is paid into the bank account of the main carer - the person who is mainly responsible for looking after the children. Families on incomes of up to £58,000 a year (or £66,000 a year if there is at least one child who is less than a year old) can benefit from the new Child Tax Credit whether or not they are working. This money acknowledges and supports the costs of bringing up children.

Childcare element of Working Tax Credit

To apply for the childcare element of Working Tax Credit:

  • Lone parents must work at least 16 hours a week
  • Both members of a couple must work 16 hours a week or more
  • Or one member of a couple must work 16 hours a week or more and the other member must be incapacitated

Parents must also use one of the following types of qualifying childcare:

  • Care registered by Ofsted (e.g. childminders, nannies, nurseries, activity clubs, playschemes or out-of-school clubs)
  • Care provided outside of school hours by a school on the school site
  • Carers approved on the Childcare Approval Scheme
  • An approved foster carer (unless the child is the foster carer's foster child)
  • A domiciliary worker or nurse from a registered agency providing care in the child's home

Note that childcare for children aged eight or over that is approved by a quality assurance scheme is no longer considered qualifying care for tax credits and must now be registered by Ofsted to qualify.

The childcare element of Working Tax Credit will be paid into the bank account of the main carer alongside the Child Tax Credit.

Relatives

Care provided by a registered childminder who is related to the child is not considered to be qualifying care for the purpose of tax credits if it is provided in the child's own home. Registered childminders should inform Ofsted of any change in their childminding status, for example if they no longer look after non-related children.

If the childcare provider is approved under the Childcare Approval Scheme and provides care to a related child outside of the child’s own home, for example in other domestic premises, it is not qualifying childcare unless the childcare provider is also looking after non-related children.

Contacts and resources

You can pick up a Child Tax Credit form from your nearest HM Revenue & Customs Enquiry Centre or Jobcentre Plus.

Helplines

The Tax Credit helpline provides information for local authorities and Children’s Information Services, and helps parents to complete their claim form or check the progress of their claim.

8.00am – 8.00pm every day (except Christmas Day, Boxing Day, New Year's Day and Easter Sunday) in England, Scotland and Wales 0845 300 3900

For people with hearing or speech difficulties in England, Scotland and Wales 0845 300 3909

Websites

Parents can follow a simple guide on the Directgov website to see whether they are eligible. Further information is available on the HM Revenue & Customs website, including a number of leaflets which can be viewed online or downloaded as PDFs.