13/02/2023tax , Tax Issues , Tax News and Tips , Tax Saving Tips , Taxation
Nowadays shared custody is also known as residency in the UK. This is important to consider especially if the parents are going through a breakup. The child’s residency will decide who will get the benefits of child tax credits. To qualify for the eligibility criteria, the first thing to consider is the ability to be the most responsible for handling the child’s needs. When somebody enquires about child tax credits in shared custody, this becomes a highly complex question. This is because of the fact that only one of the guardians will get the amount of child credits in the case of shared custody. This happens several times that both partners might think of themselves as the suitable ones to get the child tax credits and get benefits from it, however, the truth is that for one child only one will be entitled to avail of the benefits.
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Who Gets Child Tax Credits in Shared Custody?
Before you check the eligibility of getting the amount of child tax credits, you will have to take responsibility for that one child. This further explained that the child is under your supervision legally and you are the one who will look after the daily needs of the child and handle the cost of bringing that child up until the child reaches the age of 16. According to the government instructions, there can not be any split in the amount received through the child tax credits.
This tells us that one of the partners can have the amount of child tax credits for one child and the same child details will not work for claiming again on behalf of another partner. In the case where both partners are taking care of the children and have shared custody, it is complicated to figure out which one partner should be getting the number of benefits. Only the private agreement between the partners can actually resolve this issue and reach a peaceful mutual decision. This will actually help to have the factor of flexibility and decide just what is most suitable to your unique needs and circumstances.
What are Child Tax Credits in the UK?
Basically, child tax credits are defined as a tax-free amount in the UK that is given to the parents for the cost they spend on bringing up a child. Now child tax credits are also known as universal credit in the UK. Now according to the new UK rules, the ability to claim the benefits is limited. It is most often possible when one of the parents is going through an expensive or severe disability and can not afford to handle the responsibility of bearing the cost of bringing up a child on his own. As per the set of rules, the legislation says that when you are bringing up a child who is of age 16 or under the age of 16, you are in a good position to claim the benefits unless the child turns sixteen.
In some cases when your child has crossed the age limit of age 16 but is still going through educational training, you are again in a better position to benefit from the child tax credits. People between the age of 16-18 who are unable to handle the living cost due to being unemployed or surviving on a low income can also take benefits of the credits. If you and your partner are getting the child tax credits for more than one child, the amount you will receive is affected by this fact. Moreover, living with a partner as a spouse or in a civil partnership will require you to provide the details of your partner’s income before you complete the process of claiming child tax credits.
What are the Requirements to Support Your Claim?
Since the process can easily be completed online, however, there will be a requirement to submit certain documents to complete the process. The possible requirements of documentation may ask for the following:
- How amount you are spending on the cost of child care?
- The rent amount and relevant information about the residence you are living in.
- The email address
- The account details of your bank
- You will have to share all the information regarding rental properties, shares, investments, and savings.
- Evidence of your income in form of your wage or salary slip.
- You will be required to provide proof of your identity like a credit card, driving licence, or through your passport.
How to Claim If You Qualify for the Eligibility Criteria?
The first advisable step to do when you are trying to claim after meeting the eligibility criteria is to get in touch with HMRC. You can simply do it over a phone call. They will consider your circumstances if you are entitled to qualify. After the separation, this must be privately decided between the partners who are going to receive the child tax credits and who is responsible for the child.
If you are already getting the benefits, there is no need to make a new claim after the separation. You better come on mutual terms and decide who is going to receive the amount. However, you will have to inform the office of the credit about the change of circumstances. This can easily be done online or over a phone call.
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 amount of child tax credits are indeed beneficial for being the cost of a child’s brought up in the UK. However, this becomes a little complicated in case of separation. This is because of the rule that only one of the partners can make the claim for child credits for one child. In case of being separated, there must be a mutual decision made. This will help to be clear about who will take care of the child and who will receive the child tax credits in the future.
If you seek professional help to learn more about child tax credits in shared custody, why wander somewhere else when you have our young and clever team of professionals at CruseBurke?
Disclaimer: The general information provided in this blog about child tax credits in shared custody includes text and graphics. It does not intend to disregard any of the professional advice in the future as well.