Tax Credits
This section applies to UK students only. International, EU and UK students who have been living outside the UK, may not qualify for tax credits and should seek further advice either by contacting HM Revenue and Customs on 0845 300 3900 or the Student Advice Centre
Child Tax Credit
Child Tax Credit (CTC) is intended to help those people who are in low-paid work who have children.
Students with dependent children under the age of 16 (or under 19 and in full-time non-advanced education) are entitled to claim CTC.
Working Tax Credit
Working Tax Credit (WTC) is intended to help those people who are in low-paid work and assist them with the costs associated with work such as paying for childcare. Students must be classed as being in full-time paid work to qualify.
Childcare costs
The childcare element of working tax credit can pay up to 70% of the weekly childcare costs a student pays if they use a registered provider or a local authority daycare service. The maximum amount available is up to £122.50 per week for one child and up to £210 per week for two or more children.
You cannot get the Higher Education Childcare Grant and the childcare element of Working Tax Credit.
The DirectGov website provides useful information about tax credits. A tax credit calculator is available on the HM Revenue and Customs website.
Student income
Most grants and loans are disregarded when calculating a student’s income for tax credit purposes. There are, however, some exceptions to this rule such as income from the Adult Dependants Grant and the living cost element of a Professional Career Development Loan.
