Child tax credit

MrWagners1

Can anyone help? My husband and I have both become unemployed, we have 2 children aged 2 and 4. Will our child tax credits increase now we are not working? We are both looking to find we jobs but worry about money in the meantime?

Thanks

princessdon

It is an annual award - and based on last years income.

eg you need to allocate the amount for this year (from April). If you then ask for this to be reassessed they will do based on 6 months wages. BUT if you gain work again and go over the limit you will have to pay it back next year (just to make you aware).

Personally I'd rather have the money in the short term and aware that it could be paid back than wait until April to see "if I qualified" - but this is a personal chhoice.

MoneySavingMission

do you know the limits for child tax credits? my job was recently made redundant but my husband still works. what is the threshold to apply.

Caz3121

It may well come down if you were receiving part working tax credits

eg Working with household income last year of £20k - CTC 2 children = £5025
Not working with household income last year of £20k- CTC 2 children = £4230

zagfles

princessdon wrote: »

It is an annual award - and based on last years income.

eg you need to allocate the amount for this year (from April). If you then ask for this to be reassessed they will do based on 6 months wages. BUT if you gain work again and go over the limit you will have to pay it back next year (just to make you aware).

Personally I'd rather have the money in the short term and aware that it could be paid back than wait until April to see "if I qualified" - but this is a personal chhoice.

Although there is an exception if you are getting income based JSA (or certain other benefits), you get full CTC regardless of income in the rest of the year. This does not apply if you only get contribution based JSA, but it does apply if you get both.

See http://www.hmrc.gov.uk/manuals/tctmanual/TCTM07041.htm