Wednesday, February 27, 2008

Child Tax Credit - Are You Eligible and How Much Can You Claim

In the world today, raising a child is often stressful, especially if funds are limited. Children constantly need one thing or another, whether it's new shoes or sporting equipment. Managing to find the money can be just about impossible at times. However, there are government benefits available for low-income families which can help alleviate the burden in tight money situations.

One such benefit entitlement is the Child Tax Credit, which was established in order to assist parents and carers of university students and school age kids to ensure that the children will have everything they need. This has proved to be particularly beneficial to low income families that have children younger than sixteen or a young person still going to school..

The Child Tax Credit is based on the amount of children in your home and also takes into account your total household earnings. Additionally with receiving an overall tax credit, you can claim a specified amount ofchild benefit for every child in your home. You do not need to be related to the child or children, however you must be the primary carer and the children must be living under your roof.

Claiming the Child Tax Credit is simple. When you initially apply, you will have to order a claim pack. Additionaly, you'll be required to provide confirmation of who you are, which can be as easy as providing your national insurance number. Once you are approved, your Child Tax Credit can be renewed by by mail or phone. This needs to be done every year and you will be notified when it is time to renew. It's essential that you remember to report any modifications in your situation including any changes in income and household size. Should you forget to report any change, you could end up having to pay back the tax credits you've received.

You can receive Child Tax Credits in various different ways. You can have the child allowance paid on a monthly or weekly basis, and it can be placed in any account that you wish. Children's Tax Credits needs to be transferred to the main carer's account and can come in the form of a cheque, mailed to the address that you indicated on your application. This child benefit can be claimed in addition to the Working Tax Credit, a benefit entitlement if you or your spouse are employed.

If you are not approved these benefits, or don't agree with your tax credit calculation, you may appeal against a tax credit decision. However, keep in mind that this must be done within thirty days of your denial notification.

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