Is the CTC the same as working families tax credit?
No. The CTC will work as a tax allowance reducing your income tax – it is not part of the working families’ tax credit (WFTC) scheme. For the CTC there is no savings limit and, other than the usual income assessment by the Inland Revenue to calculate income tax liabilty, there is no means test. Working families’ tax credit is a scheme to provide extra cash support for people on lower wages who have children. There is a savings limit and the Inland Revenue will require more information about other household income and family circumstances. If I am already receiving WFTC should I bother claiming the CTC? If you or any partner do not earn enough to be liable to pay income tax you will not gain from the new CTC at the moment. If you do receive WFTC you should apply for the CTC. Because of the way that WFTC is calculated you may not be as much as £10 a week better off, but the amount you gain overall will depend on your circumstances. Because WFTC is usually awarded for six months at a time
