Summary 

• A Child Tax Credit in the UK can only be claimed for children you are responsible for, based on certain conditions.
• For new as well as existing claims, amounts such as child element and family element can be received.
• Adopted and disabled children are also covered under it.

The US administration under President Joe Biden has recently announced to provide US $15 billion to the families as the first monthly installment of the Child Tax Credit that was expanded under US $1.9 trillion American Rescue Plan. A tax credit provided to parents with dependent children is known as the Child Tax Credit. Various countries offer such credits, and the credit limit is determined based on factors such as the number of dependent children and the income of the taxpayer parent. People who already get working tax credit are eligible to apply for the child tax credit. A universal tax credit is an option for people who cannot apply for the child tax credit.

In the US, the Treasury has given out these payments to families with nearly 60 million children entitled for the credit. Under the scheme, the families would get a monthly payment of up to US $300 for each child under 6 years and up to US $250 for each child between 6 and 17 years.

In the UK, the amount one gets as the child tax credit depends on the number of children, and whether one is trying to put forward a new claim under the scheme. Your child benefits are not affected by the child tax credit.

Child tax credit can only be claimed for the children who are dependent on you. But what are the criteria to determine the eligibility?

If the child permanently lives with you, or even if they mostly live with you and you are their main caregiver, then certainly you are responsible for the child. If the child keeps their clothes and toys at your house, and you feed them and give them pocket money, then also the child is dependent on you.

Additionally, if the child lives in a European Economic Area (EEA) country or Switzerland but is financially dependent on you, then also you are responsible for the child. Child tax credit can also be claimed if you adopt a child, and also extra credits can be claimed in case of taking responsibility of a disabled child, who is certified blind, or gets Personal Independence Payment, Disability Living Allowance, or Armed Forces Independence Payment 

How to make a new claim

In case of all your children are born before 6 April 2017, you are eligible to receive the child element of Child Tax Credit for all of them, in addition to the family element, which is the basic amount. But in case of one of your child was born on 6 April 2017, or after, you are eligible to receive the child element of Child Tax Credit for maximum 2 children, unless exceptions are applicable. The family element in this case can be received only if at least one child was born before 6 April 2017. 

For the 2021-22 year, the yearly basic amount or family element is up to £545, child element per child is up to £2,845, amount for each disabled child, over and above the child element, is up to £3,435, and amount for each severely disabled child, over and above the child element and the disabled child element, is up to £1,390.

In case of your arrival in UK from an EEA country, the waiting period to claim child tax credit is 3 months, with some exceptions such as for refugees. 

In case your claim started before 6 April 2017, you are eligible to receive the basic amount or family element, and also the child element for children born before 6 April 2017. If you have another child who is born on or after this date, then you may only receive the child element and not the family element. In case of exceptions, child element may also be claimed for more children.

In case your claim started on or after 6 April 2017, child element may be claimed for up to 2 children, and more children if there are exceptions. Only if one of your child is born before 6 April 2017, the family element can be claimed. If all your children were born before 6 April 2017, you are eligible to claim the child element for all of them along with the family element.

The child tax credit rates for the tax year 2021-22 are the same as mentioned above in case of making a new claim.

How can you get it

The person who is responsible for the child will get all the allowances and benefits through an account, for example a bank account, and is paid every week or month from the date of claiming the credit till 5 April, which is the end of the tax year. This is valid until any new change is introduced by the UK government.