Guide to claiming child tax credit
The Child Tax Credit is paid directly to the main carer in addition to Child Benefit.
To make a claim for the tax year 2005/06, you will have to provide details of your income and that of your partner for the tax year 2004/05. This will be adjusted at a later date to take account of actual figures for 2005/06.
In future, credits will be based initially on the preceding year's income.
Application is made by completing a claim form available from your local tax office or by applying online. It is a similar process to completing a Tax Return.
A claim must be made by 30 September 2005 to qualify for the full year's credits due for 2005/06 as they can only be backdated by three months.
If you have varying levels of income, it will be difficult to know by 30 September whether you qualify and you run the risk of missing the opportunity to claim.
What we recommend is that you make a 'protective claim'. This involves submitting a claim form by 30 September 2005 regardless of whether your 2004/05 income exceeded the limit. You will not receive any tax credit at this time but, when your 2005/06 income is known, any entitlement to Child Tax Credit will be backdated to 6 April 2005.
The claim service we offer is completion of the Child Tax Credit form for £185 + VAT. For our personal tax return clients, there is a discount of £50 which reduces the cost to £135 + VAT.
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