Tax credits: extra money for families

Nine out of ten families with children can claim child tax credit. Working tax credit can help you pay for childcare and top up low earnings. Use HMRC's tax credits calculator to work out how much you might get.

Having children puts a strain on the family budget, but the government provides cash to help. This comes in the form of child benefit and tax credits.

Nearly all families are eligible for child benefit which is paid regardless of family income. It provides a tax-free amount of £20.00* a week for your eldest or only child and £13.20* a week for each other child.

Tax credits depend on your household income, but even families with an income up to £58,175* a year, or £66,350* if they have a baby under one, are eligible for some help.

Examples of tax credits

Family	Tax credits they get*
Couple, both work full time, income £23,000 a year, two children, childcare £120 a week	£155 a week
Single parent, not working, no taxable income, child aged 9 months	£64 a week
Couple, one working full time, £30,000 a year, three children	£50 a week

*Rates shown are for the tax year 6 April 2009 to 5 April 2010.

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