Baby Tax Bonus

Face · 30 January 2005 at 11:53AM

Hi,

My wife and I have just had our first child - who is great, by the way

We know that we will be able to claim Child Allowance, Child Tax Credit and that we will also receive the £250 Baby Bond in due course.

I have also discovered a credit called the Baby Tax Bonus, which can be worth upto £1049 for the first year of your baby's life. This is "paid" in the form of a tax code change to the main earner. I've found various mentions of it by Googling "Baby Tax Bonus", including on the Inland Revenue's own website (but couldn't print the page at the time, d'oh!), but when my wife spoke to the IR they said they'd never heard of it, and we'd have to speak to Child Benefit, who in turn said they'd never heard of it and that we'd have to speak to the IR.

Had anyone here successfully claimed this Baby Tax Bonus or have any advice that they could pass on to me.

Many thanks.

Spendless · 30 January 2005 at 12:36PM

Hi

I think what you're referring to is the extra amount of CTC that is paid for the first year of babys life.

You get an extra £545 on top of your child tax credit, for the first year of babys life. Once baby turns one, you will just get the CTC you are entitled to for your income.

So lets say i was having my 3rd child on May 1st 2005 (i'm not!!)

I currently receive £545 in total for the 2 children i already have
May 1st baby is born i then get an extra £545 on top of the £545 i already receive.
April 30th 2006 payment stops.
May 1st 2006 - i go back to receiving £545 in total for my children.

This example above is what i would receive and based on our household income, people could receive more or less depending on their own income.

HTH

Face · 30 January 2005 at 4:50PM

Hi,

Thanks for the reply.

When we spoke to the Inland Revenue, the chap did mention that we would get this extra £545 for the first year, but this baby tax bonus seems to be an entirely seperate entity, as it affects the main earners tax code, so i would in effect be paying less tax. It is also worth up to £1049 for the year.

I've just had another google and have found mention of it in a pdf file here on page 4.

https://www.echeshire-tr.nwest.nhs.uk/ pdf%5CGoodhealthApril2k3.pdf

This article states that it is only available for babies born between April 02 and April 03 and will then be replaced by new tax credits.

BUT in one of my wife's pregnancy magazines, it mentions this Baby Tax Bonus and this was only about 8 months ago. Strange.

I know it seems a lot of hassle for £20pw, but hey, £20 is £20.

Are there any other benefits that we can claim, other than the Child Tax Credit and Child Allowance? We've never had to claim any sort of benefits before and it seems such a confusing place to be

Thanks again.

deemy2004 · 30 January 2005 at 6:26PM

All I can find on baby tax bonus is on australian sites

Maybe wires are a little crossed ?

jo_b_2 · 30 January 2005 at 6:29PM

Face wrote:

This article states that it is only available for babies born between April 02 and April 03 and will then be replaced by new tax credits.

BUT in one of my wife's pregnancy magazines, it mentions this Baby Tax Bonus and this was only about 8 months ago. Strange.

I seem to remember that this was the old system which existed prior to the new tax credit system starting. My son was born in Sept 2002 and that tax year we had our 'tax credit bonus' paid directly through our salary. The system changed in the next tax year.

Probably just the magazine giving out outdated info.

Spendless · 30 January 2005 at 6:39PM

Face wrote:

Hi,

Thanks for the reply.

When we spoke to the Inland Revenue, the chap did mention that we would get this extra £545 for the first year, but this baby tax bonus seems to be an entirely seperate entity, as it affects the main earners tax code, so i would in effect be paying less tax. It is also worth up to £1049 for the year.

I've just had another google and have found mention of it in a pdf file here on page 4.

https://www.echeshire-tr.nwest.nhs.uk/ pdf%5CGoodhealthApril2k3.pdf

This article states that it is only available for babies born between April 02 and April 03 and will then be replaced by new tax credits.

BUT in one of my wife's pregnancy magazines, it mentions this Baby Tax Bonus and this was only about 8 months ago. Strange.

I know it seems a lot of hassle for £20pw, but hey, £20 is £20.

Are there any other benefits that we can claim, other than the Child Tax Credit and Child Allowance? We've never had to claim any sort of benefits before and it seems such a confusing place to be

Thanks again.

My youngest was born on March 31st 2003 (ie in the tax year 02-03) and last year we did get some money back from the tax man i remember now the reason it gave was the old CHILDRENS Tax Credit (as opposed to CTC- CHILD tax credit).

It did used to go through your tax code - it's what replaced the married mans allowance.

It sounds like jo-b said it only applied to those born in the tax year 2002-2003 and the mag has got incorrect, out-of date information in it.

As to what you can claim, well it depends on your income.We receive CTC and Child Benefit. Youngest qualifies for the child trust fund, she will also get
funding for her playgroup place after her 3rd birthday.

Baby Tax Bonus

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