Tax credit payments are based on current personal circumstances, such as employment, number of children and annual income.  Parents of children with exceptional healthcare needs may be eligible for both Child Tax Credit and Working Tax Credit.  The amount received depends on other income.  DLA doesn’t count as income when tax credits are worked out.  Other benefits like Carer’s Allowance do count as income and can reduce tax credit payments.

Here is a breakdown of Child Tax Credit elements and what they mean:

The Child Tax Credit Elements What it means Maximum amount for 2015-16
Family Element – the basic element It’s the basic payment if you are responsible for one or more children £545
Child Element This is paid for each of your children.  It is paid on top of the basic family element. £2,780
Disability Element This is an extra payment for each disabled child you have. £3,140
Severe Disability Element This is an extra payment for each severely disabled child you have.  It is paid on top of any disability element. £1,275

To receive the disability element the child must receive any rate DLA (care or mobility component).  To receive the severe disability element the child must receive high rate DLA (care component).  Calculations are complex and it may be worthwhile double-checking to avoid overpayment (which will lead to recouping from future payments).  To find out more about entitlement, you can use the tax credits calculator or contact the Tax Credit Helpline

Here are some other useful links regarding Tax Credits: