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Frequently asked questions - tax, tax credits and related issues

If there is a question that you have been puzzling over why not suggest a faq. This page last updated 27 October 2008.

Q1. What are tax credits?

Q2. How do I claim tax credits?

Q3. How much are tax credits?

Q4. Who is responsible for tax credits?

Q5. What if I have been overpaid tax credits?

Q6. What if I disagree with my tax credits decision?

Q7. What if my circumstances change?

Q8. Do I have to have a medical examination to prove disability for tax credits purposes?

Q9. Where can I get advice on tax credits?

Q1. What are tax credits?

A1. Tax credits give financial help to you if you have dependent children or are in work but on a low income. You must be over age 16 . The help for children is called child tax credit (CTC) and the help for those in work is called working tax credit (WTC). You can find out more about tax credits in our Factsheet F9 - a guide to tax credits.

Q2. How do I claim tax credits?

A2. You claim both child tax credit (CTC) and working tax credit (WTC) on the same form, TC600. You can get form TC600 from Jobcentre Plus offices and HM Revenue and Customs Enquiry Centres.

Alternatively you can telephone 0845 300 3900 (text phone 0845 300 3909) if you live in Great Britain or 0845 603 2000 (textphone 0845 607 6078) if you live in Northern Ireland for a copy of the forms.

Q3. How much are tax credits?

A3. The amount of tax credits you can get may be affected by:

• your income
• the number of hours you work
• whether you have children
• whether you pay for childcare
• whether you are a disabled worker
• your age if you are 50 or over

You can find out more about tax credits in our Factsheet F9 - a guide to tax credits.

Q4. Who is responsible for tax credits?

A4. Responsibility for administering the new tax credits rests with HM Revenue and Customs.

Q5. What if I have been overpaid tax credits?

A5. For more information see our Factsheet F18 - tax credits overpayments.

Q6. What if I disagree with my tax credits decision?

A6. For more information see our Factsheet F34 - if you disagree with your tax credits decision.

Q7. What if my circumstances change?

A7. You do not have to tell the Inland Revenue if your income changes during a tax year but you might wish to do this because there is a risk of an underpayment or overpayment when the tax year ends and the award is compared with your actual income. Any underpayment will then be repaid as a lump sum. Alternatively, if you have been overpaid you will have to pay this money back.

You must report the following changes:

• If you separate from your partner
• If you start to live with a new partner
• If you stop paying child care
• If your childcare costs go down by £10 a week
• you stop being responsible for a child or qualifying young person or the one you are responsible for dies.
• your work hours change so that you no longer meet a 16 or 30 hours a week qualifying rule
• If you or your partner leave the UK permanently, lose the right to reside or are away from the UK for at least 8 weeks (12 weeks if you go or remain abroad due to illness, or a member of your family is ill or has died).

You can find out more about tax credits in our Factsheet F9 - a guide to tax credits.

Q8. Do I have to have a medical examination to prove disability for tax credits purposes?

A8. No there is no requirement to pass a medical for tax credits.

Q9. Where can I get advice on tax credits?

A9. The best way to get advice on tax credits is to go to a local advice centre in your area, such as a local citizen's advice bureau.

The homeless uk  website has an excellent "services" search facility which enables you to search, by area, for agencies providing benefits and debt advice (be sure and type benefits in the "text" box).

You may also find our Factsheet F15 - finding a local advice centre useful.

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