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How your tax credit payments are worked out

Your tax credit payments are based on your current personal circumstances and your annual income from the tax year that ended on 5 April 2008. The lower your income, the more tax credits you can get.

How much you’ll get

Tax credits are made up of a number of elements, or payments. When HM Revenue & Customs (HMRC) receive your claim form your family circumstances will be looked at to see which of the elements you are eligible for. They will also look at the information you’ve given about your total household income to work out whether you will get tax credits in full – the maximum amount, or at a reduced rate. The higher your income, the less tax credits you are likely to get.

Child Tax Credit elements

Maximum amount for 2008-2009

Family element - the basic element for families responsible for one or more children

 £545

Family element paid to families with one or more children under the age of one. Only one payment regardless of how many children under one

 £545

Child element - one for each child or young person you are responsible for

 £2,085

Disability element - one for each child you are responsible for if you are receiving Disability Living Allowance for the child, or the child is registered blind or has been taken off the blind register in the 28 weeks before the date of claim

 £2540

Severe disability element - one for each child you are responsible for if you receive the Highest Rate Care Component of Disability Living Allowance for the child 

 £1,020

 

Working Tax Credit elements

Maximum amount for 2008-2009

Basic element - paid to any working person who is eligible

 £1,800

Couples and Lone parent element

 £1,770

30 hour element - for people who work at least 30 hours a week. Couples with at least one child can claim the 30 hour element if they work at least 30 hours a week between them providing at least one of them works 16 hours or more a week

 £735

Disability element - for working people who are disabled

 £2,405

Severe disability element – for each person who receives the Highest Rate Care Component of Disability Living Allowance or the Higher Rate of Attendance Allowance 

 £1,020

50+ Return to work payment (16-29 hours) for people who are returning to work after a period on benefits

 £1,235

50+ Return to work payment (30+ hours) for people who are returning to work after a period on benefits

 £1,840

A childcare element, where you can get back up to 80 per cent of your costs for eligible childcare

£175 maximum eligible cost per week if you're paying for one child £300 maximum eligible cost per week if you're paying for two or more children

Your tax credit payments

If you make a claim and qualify for tax credits you will be sent an award notice. This tells you how much money you will get based on the information you gave to HMRC. It’s important that you check your award notice. Use the checklist provided to tell HMRC if anything is wrong, missing or incomplete, or if there’s anything you don’t understand.
You can do this by calling the Tax Credit Helpline on 0845 300 3900 or textphone 0845 300 3909. You should do this within a month of getting it.

It’s also important to check the amount of money going into your bank account. Your award notice will show your first payment, plus the amount to be paid every week or every four weeks. If a payment doesn’t match the amount on your award notice call the Tax Credit Helpline on 0845 300 3900 (textphone 0845 300 3909).

If you disagree with your tax credit award decision - you can appeal. You have 30 days from the date of the award decision in which to appeal.

Contacting HMRC

If you want to get an idea of how much money you’ll get, you can call the Tax Credit Helpline on 0845 300 3900 or textphone 0845 300 3909 (open from 8.00 am to 8.00 pm, seven days a week except Christmas Day, Boxing Day, and New Year's Day).

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