Following my article yesterday about some of the anxiety brought on by the financial burdens of moving to a single income; buying baby furniture clothes, food and nappies etc, we’ve decided to create a summary post on some of the help a new family are entitled to, and how to reduce the costs of bringing up a child.
In part 1: tax credits, I shall describe the tax and credits available to a new family.
Child tax credit – Child tax benefit is intended for families with a combined salary of £58k or less (£66k if you have a child under 12months). The actual amount you will receive is based solely on your household income and neither parent needs to be working to claim this benefit.
The credit is paid directly into the primary carers’ bank or savings account and is paid on a weekly or monthly basis.
Working tax credit – Work tax credit is intended for people who are employed or self-employed and on a low income. The only criteria for claiming are that you work more than 16 hours a week and are over the age of 16. The amount you will receive is determined on the amount of hours a week you work and the income earned. On top of this you can apply for up to 80% of your childcare costs to a maximum cost of £175 per week (£300 for two or more children) but you must use registered childcare services.
You can choose to receive working tax credit on either a weekly or monthly basis and is paid directly into you bank or savings account. If you qualify for childcare costs the credit will also be paid to the claimant.
For more information on child and working tax credits and how to apply visit: http://taxcredits.hmrc.gov.uk/Qualify/WhatAreTaxCredits.aspx
Child benefit – Child benefit can be claimed by any parent responsible for looking after a child right up to the age of 16 (longer if your child stays in education). Child benefit works out at £20.30 for the first child and £13.40 for each additional child.
Child benefit is paid directly into a bank or saving account and is normally paid every four weeks. You can request a weekly payment if you are getting income support.
Child benefit claim form:
Or call 0845 302 1444
In part 2 we shall be discussing the best places to look for baby bargains.