Tax credits are made up of Childcare Tax Credit (CTC) and Working Tax Credit (WTC), both which a member in a couple or single can claim based on:
- Disabilities
- Income
- Age
- Number and age of children
- Hours worked
- Childcare costs
Tax credits supports families when they need it. They help provide support to parents returning to work, reduce child poverty and help financial support for families.
Child Tax Credit (CTC):
Income related support for children aged 16-19 who are in full time non-advanced education, payable to the main carer or into a single tax credit.
Disability and Severe disability: for each child, the claimant gets Disability Living Allowance for the child.
Family: Responsible for one or more children.
Child: paid for each child that the claimant is responsible for.
Working Tax Credit(WTC):
Provides support for people on low income.
30 hour: for individuals who work 30 hours a week, couples where one person who works 30 hours or has a child that can work 30 hours between them.
Childcare: single people or couples who works 16 hours a week and spend money on the registered childcare.
Severe Disability: who are receipt of Disability Living Allowance or Attendance Allowance at the highest rate.
Disability: people who work 16 hours a week and that their disability puts a disadvantage on them to getting a job and that is receiving qualifying sickness or disability related.
Some out-of-work families with children do not receive CTC but they receive the same amount by child and related allowances in Income Support or Income-based Jobseeker’s Allowance.