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HMRC internal manual

Claimant Compliance Manual

Overview: Child Tax Credit Entitlement

There are no work conditions attached to the Child Tax Credit. Entitlement is assessed on the basis of an individual’s or couple’s income. It includes a number of elements:

  • a family element paid to all families eligible for Child Tax Credit, broadly along the lines of the Children’s Tax Credit
  • a child element for each child within the family
  • an extra credit for families caring for children with a disability, available for each child with a disability, and paid at an enhanced rate for children with more advanced disabilities.

Child Tax Credit is paid to the main carer direct. It is not paid with wages, even if the carer is in employment.

Example 1:

Jack & Jill live together and have two children aged 9 months and 3 years. Jack works 24 hours a week and is on a low-income and Jill looks after the children.

They are entitled to:

  • Working Tax Credit
  • Child Tax Credit - Family Element. Including a child element for each child

The CTC will be paid direct to Jill who is the main carer.