Child Tax Credit - Are You Eligible And How Much Can You Claim?

In the world today, raising children can be difficult, particularly if funds are tight. Children constantly need one thing or another, whether it's the newest video games or clothing. Figuring out how to find the money can sometimes be next to impossible. However, there are government benefits available to low-income households that may help relieve the burden in circumstances like these.

One such government benefit is the Child Tax Credit, which was created and intended to lend a helping hand to caregivers and families of school age children and university students to assure that the children get what they need. This will be extremely helpful to low income families that have children younger than 16 or a young person that is still in full-time education.

The Child Tax Credit is based on the number of children in your household and also takes into account your household income. As well as receiving a tax credit for the family, you can also claim a specified amount of child benefit for every child living in your care. The children do not need to be related to you, but you must be the primary carer and the children have to live full time under your roof.

Claiming the Child Tax Credit is very easy. When you initially apply, you'll need to get a claim pack. You'll additionally have to provide proof of your identity, which can be as simple as providing your national insurance number. Once you get approved, you can renew your Child Tax Credit by mail or telephone. This needs to be done annually and you'll receive notification when you need to renew.  It is essential for you to remember to report any modifications to your circumstances such as any kind of change in income and household size. If you do not report changes, you could have to pay back the tax credits that you've received.

You can receive Child Tax Credits in a number of different ways. You can have the child allowance paid monthly or weekly, and it can be placed in any account that you wish. The Child Tax Credit has to be transferred to the main carer's bank account and can come as a cheque, mailed to the address on your application. This child benefit may be claimed in addition to the Working Tax Credit, which is a government benefit if you or your spouse are employed.

If you are denied these benefit entitlements, or do not agree with the calculation of your tax credit, you have to right to appeal a tax credit decision. However, keep in mind that this needs to be done within 30 days of the notification of denial.