There are several people who enquire about child tax credits in shared custody in the UK. Arranging an explanation to such queries often becomes complicated because of the fact that only one person is allowed claim the child tax credits at the same time. In shared custody both parents might want to take benefit of the child tax credits, however, the truth is that one child tax credit will go to one person. This makes one of the claims fail to get the entitlement. Here the word custody has prominent importance. As custody refers to the residence.
By this, we understand that the main residence of the child is suffering from the parent’s break up. Before you plan to claim the child tax credits, this must be evident that you are the most responsible and safe option for child custody. This can bring in a win-win situation as well. This guide will help you to gather information about everything you need to know about child tax credits and what is the scenario in shared custody.
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Child Tax Credits
Child tax credits refer to the kind of amount that is given to the person who takes the child’s custody. These are given to cover the amount of money you have spent to take care of the child. This kind of amount is given to one of the parents in form of child tax credits. This is usually tax-free. Child tax credits are now known as set universal credits. Moreover, there are exceptional circumstances that allow making claims for child tax credits. Suffering from the premium severe disability is one of the examples of this exceptional scenario.
According to the law when you are bringing up a child who is age 16 or younger than this, you can get the child tax credit amount till the sixteenth birthday. The August of the 16th year will be considered the last month for this. If your child is age 20 but he is still getting full-time education or training, you will be able to get the child tax credits. When it comes to universal credit, people who are living on a low income are able to apply for the living cost if they are aged around figure 18. In a few circumstances, 16 and even 17 are considered too. You will have to consider the number of children for whom you are making a claim. This can affect your claim and the amount of money.
Child Tax Credits in Shared Custody – who gets it?
The shared custody child credits and universal credit are normally dealt with under the set of rule 3. According to the law, you must accept the responsibility of bringing up the child for whom you are making a claim. This will allow you to have legal custody. The regular welfare and the needs of the child become solely your responsibility. There is no splitting to the amount of shared custody tax credits instructed by the government. This further explained that only one person can get the child tax credits for one child and both parents aren’t allowed to make the claim for the same child.
How to Claim Child Tax Credits?
This is advisable to get in touch with HMRC over a phone call if you are new to the claim for child tax credits. On the other hand, if you find yourself in a good position to claim universal credit, you will have to consider your circumstances before you plan to make a claim. In the case you and your ex-partner have come to terms with who will get the amount of universal credit, there is no requirement to make a new claim in this scenario. All you have to do is to get in touch with Tax Credit Office to notify them about the change in circumstances. This will help the relevant authority update your records and information. This process can be completed either over a phone call or online.
What are the Required Documents to Support the Child Tax Credit Claim?
To make claim for the child tax credits, you will be required to provide certain documentation and information that will confirm your identity. This process is also completed to get to know about your circumstances related to finances and personal details. The required documents for the process include the following:
- The amount of money that you have paid in the cost of childcare.
- Email address
- What is your housing situation? Whether you are living on rent or you own the house.
- Your bank account number and relevant details
- The evidence of your income details like your payslip.
- You will have to disclose all the information related to the rental properties, shares, investments, and savings.
The Bottom Line
Now that you have gathered a fair amount of information about the child tax credits in shared custody, we can bring the discussion towards wrapping up. The child tax credits normally go to one of the parents in the case of one child. Both parents can not claim the same child. This is advisable to consider your circumstances and come to mutual terms about who will raise the child and get the child tax credits. This is to inform the authorities as well so that your records are updated for any changes in the family. We hope these few minutes of reading will help you to develop a better understanding of the UK tax policy for child tax credits in shared custody.
Disclaimer: The information about the child tax credits in shared custody in this blog includes text and graphics of general nature. It does not intend to disregard any of the professional advice.