Child Tax Credit is a benefit which can help people who are responsible for a child with extra financial support. Child Tax Credit is one of many benefits which are gradually being replaced by Universal Credit. People can only make a new claim for Child Tax Credit if they are already receiving Working Tax Credit.

Is Child Tax Credit means-tested?

Tax credits, including Child Tax Credit and Working Tax Credit, are means-tested benefits.

Means-tested benefits are affected by both income and savings.

Other benefits which are means-tested include Universal Credit, Pension Credit and Housing Benefit.

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“If your income goes up by £2,500 or more and you delay telling the Tax Credit Office or wait until the next time your claim is due to be re-assessed, you might find you have been overpaid tax credits.

“You’ll be asked to pay this extra money back, either by reducing your future tax credits or by direct payments if your tax credits have stopped.

“To avoid this bill, it’s even more important to tell the Tax Credit Office within 30 days of when you get the extra money.

“It’ll be easier for your tax credits to be adjusted, and decrease the chance you’ll be chased for over-payments at a later date.

“It also works the other way. If your income falls by £2,500 or more, you might be entitled to more tax credits.

“If you’re asked to repay tax credits and will struggle to pay, speak to the Tax Credit Office as soon as you can.”

Further details on how Child Tax Credit claimants can report a change in circumstances can be found on the Government website HERE.