Below is a list of questions that are answered in this section.
Questions
My child was born before April 2003 when Child Tax Credit (CTC) was introduced. Will they still be eligible for the additional payment for lower income families?
I have been over/under paid tax credits. Does this mean I might have to pay back the additional £250 you’ve paid into my child’s Child Trust Fund (CTF) account?
Answers
Q. My child was born before April 2003 when Child Tax Credit (CTC) was introduced. Will they still be eligible for the additional payment for lower
income families?
A. CTC was introduced in April 2003, six months after the earliest date that children could become eligible for a CTF account. To ensure that children born between 1 September 2002 and 5 April 2003 don’t miss out, your child will get the additional payment of £250 if the household was awarded CTC and had an income below the CTC threshold in the following tax year, 2003/04 of £13,230.
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Q. I have been over/under paid tax credits. Does this mean I might have to pay back the additional £250 you’ve paid into my child’s CTF account?
A. Not usually. We only pay the additional £250 once your tax credits award has been finalised and you've confirmed your income for the relevant year. At that stage we know for certain whether or not your child qualifies. So even if you've been over/under paid tax credits during the year it doesn't affect the additional CTF payment.
The only circumstances in which we may have to take back an additional CTF payment is where there is a change to the information you gave us in connection with your Tax Credits award. In that case, the money would come out of the CTF account and not out of your Tax Credit payments.
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