What benefits can I claim if I have children?
If you have children aged under 16 (or under 20 and in full-time education up to A Level or equivalent), you can claim Child Benefit. From 6th April 2010 the rate is £20.30/week for the first child and £13.40/week for the others. You can backdate your claim by up to 3 months.
If you’re also on low income (whether you are working or not), you can also claim child tax credit. The amount will depend on your individual circumstances and the level of income that qualifies can be surprisingly high (around £56,000). “Income” is the joint income of you and your partner and excludes maternity/paternity pay, child benefit, and savings, but includes income from savings. If you have children you should apply anyway to see if you qualify.
There is a maximum amount for each “element” of child tax credit. Currently, the family element maximum is £545/year, the baby element (if you have a child under one) maximum is also £545/year, child element (for each child) maximum is £2,300/year and there are additional elements for disabled children. How much you get will depend on your circumstances.
Child tax credit does not include payment for child care. If you’re working (even for your own company), your employer can provide you with childcare vouchers. If they do not wish these vouchers to be in addition to your current salary, it can be done through salary sacrifice. Up to £55/week or £243/month per employee can be provided free of tax and national insurance. The scheme has to be available to all staff and the childcare provider must be registered or approved. Receiving childcare vouchers from your employer may reduce the amount of working tax credit that you are entitled to because there is a childcare element in that.
If your child was born after 1 September 2002 and you are getting Child Benefit, the government will issue you automatically with vouchers for a child trust fund account. This is a savings and investment account for your child. The government makes a payment of £250 into a Child Trust Fund Account, followed by another £250 on your child’s seventh birthday (more if you’re getting child tax credit and you’re on income below £16k). You (and others) can contribute up to £1,200/year to the fund and your child will gain access to the account when they reach 18. Income from the child trust fund account is tax free until then.
"you can also claim child tax credit"
"your employer can provide you with childcare vouchers"
"The government makes a payment of £250"