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HMRC have added an introduction to Child Tax Credit (CTC) and Working Tax Credit (WTC) to their website.

Broadly, the introductory information is easy to read and advises that CTC may be payable to anyone responsible for at least one child or young person who normally lives with them, and for those who work but earn low wages, WTC may also be payable.

According to HMRC, nine out of ten families with children qualify for child tax credits. How much they receive depends on things like:

• the number of children or qualifying young people;
• whether any child or young person is disabled;
• level of earnings.

Anyone who is responsible for a child, or qualifying young person, can claim Child tax Credit - not just parents.

Working Tax Credit can be claimed by anyone in work on low pay, regardless of whether they are employed or self-employed. Additional amounts may be payable to:

• parents or those responsible for one or more children or young people;
• those paying for childcare;
• those with disabilities;
• those aged over 50.

Rates

The basic element of Working Tax Credit payable for 2007/08 is £1,730
Couples and lone parents may be entitled to an additional £1,700

Child Tax Credit family element for 2007/08 is £545
Family element, baby addition is £545
Child element is £1,845
Disabled child element is £2,440
Severely disabled child element is £980

Link

HMRC: Tax Credits
Tax Credits helpline
HMRC: Tax Credit rates