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Changes to tax credit rules.

(13 Posts)
Babyroobs Thu 27-Oct-16 15:59:18

Can anyone explain the 2 child rule affecting tax credits from April 2017. I understand that if you already claim TC and have a 3rd child then you won't get extra tax credits for the 3rd child. However if I don't currently claim any TC but my circumstances change and I am eligible to claim them after April 2017 ( so would be a new claim) can I claim for all 3 of my kids under 18 or only 2 of them? Thankyou for any clarification.

Babyroobs Thu 27-Oct-16 16:02:31

And also are the thresholds staying the same. So if I could only claim for 2 of them, would our household income need to be below £32 to be eligible? Or will the threshold stay at £38k because we have 3 kids but can only claim for 2 ?We have no childcare costs. Very confused, any help appreciated.

Gymboree567 Thu 27-Oct-16 16:04:41

I think a new claim from April 2017 will only give tax credits for 2 children irrelevant if when they were born
I may be wrong but that's how I read it

Imnotaslimjim Thu 27-Oct-16 16:05:44

Taken from the entitledto.com website

Child Tax Credit changes

The Chancellor announced in his summer budget that from April 2017 support provided through Child Tax Credit will be limited to 2 children, so that any subsequent children born after April 2017 will not be eligible for further support.

In addition to the 2 child limit the ‘family element’ of £545 per year will be abolished. In effect this will mean that families with one or more children born before April 2017 will continue to get the family element but new claims after this date will not.

so its children BORN after April 2017 that can't be claimed for and that you only get the extra family element if your children were born before April 2017 also.

Gymboree567 Thu 27-Oct-16 16:13:07

Oh ignore me I'm not sure, that's what I heard on the wright stuff!!

Babyroobs Thu 27-Oct-16 16:13:56

Thanks so Imno, so even if it was a new claim after April 2017, we would get the family element and TC for all 3 kids.

PersianCatLady Thu 27-Oct-16 16:43:09

At present the advice being given is that -
"The changes to tax credits only apply to people who have children born on or after 6 April 2017. The government have said that new claims for Universal Credit from families with more than three children will be redirected to tax credits until November 2018, so in practice, it’s only people who have a third child on or after 6 April 2017 who should be affected."

However as with all these things this advice is subject to change.

FruitCider Thu 27-Oct-16 16:45:46

It's not just any children born after April 17, it is any new claims after April 17 too. They have been very sneaky not advertising this one.

PersianCatLady Thu 27-Oct-16 16:45:50

Here is a link to the parliamentary statement that gives the advice I posted above -
www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2016-07-20/HCWS96/

Babyroobs Thu 27-Oct-16 16:52:37

Fruity - That is what I have read as well which is why I was confused as to whether we would be eligible to claim for all 3. Hopefully we won't need to claim at all but I am just considering the worst case scenario. Thanks for everyone's help.

PersianCatLady Thu 27-Oct-16 17:34:40

It's not just any children born after April 17, it is any new claims after April 17 too
That is what they said originally but on 20/07/2016 the rules were clarified as what I posted above.

Therefore in the OP's case she would be able to submit a new claim for all 3 children (born before 06/04/2017) for CTC up until November 2018.

Babyroobs Thu 27-Oct-16 18:24:21

Thanks Persian for clarifying that.

PersianCatLady Thu 27-Oct-16 19:04:08

Thanks Persian for clarifying that
Anytime but be aware that as with anything Government related, it may change.

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