Child Benefit / Child Tax Credit...

gadgetboy00

Hi all,

I have recently had a child and have been advised to claim with Child Benefit or Child Tax Credit. I am unsure of the difference.

I filled in a form, a section of which said if my earning were over a certain level then the tax I would get would be equal to the benefit I would receive i.e. not much point.

It then went on to say that when 16 my child would get their National Insurance number.

I sent off the form and that was the last of it.

I then heard from HMRC to say I am entitled to claim £20.30 per week.

However between my wife and I are on a joint income of £110,000 so how can we be entitled to the benefit.

If we are then great! Can anyone advise?

pmlindyloo

You are talking about Child Benefit. You would not be entitled to Child Tax Credit as your salary is too high.

You are entitled to Child Benefit but, as you are no doubt aware, if you/your OH earn over £50000 pa then you will be liable to income tax on the Child Benefit. So, it seems that you are entitled to claim but are advising you that you would be no better off after you had paid the income tax.

A link here to explain:

http://www.hmrc.gov.uk/budget2012/cb-income-tax.htm#a1

I believe that you can refuse to claim it if this is the case.

Another link that may be useful:

http://www.hmrc.gov.uk/childbenefitcharge/index.htm