I might be being a bit thick about this, but if a parent is claiming IS, then is child benefit counted as income for CTC purposes as it used to be when you had to claim the child element of IS? From recent cases I've dealt with it doesn't seem to be - is this a mistake? I can't believe that the government would let lone parents have extra money without totally crowing about it.

Child Benefit is disregarded for tax credit purposes, see reg. 7(3) Tax Credits (Definition and Calculation of Income) Regulations 2002, SI No. 2006.

The whole issue of income support verses CTC confused me for a time. It definitely was not an act of generosity by the government because the child element within CTC is only worth £31.25 per week whilst the dependant allowance in IS is worth 42.27. So when CB is taken into account within IS it approximates to the same as the child element in CTC.

David

Yes it's correct.

If someone gets an addition on their IS for a child at present the amount is £43.88 pw. The child benefit is then taken off of this as you know, leaving £26.88 pw for the first child and £32.48 for any subsequent children.

The child element of CTC works out at £32.50 per week for each child over the age of 1.

The family premium also reduced from £16.10 per week to the family element of CTC which works out at £10.48 per week.

Pretty similar figures after all eh?!!

Aaaah...it all becomes clear now!

It's like coming out of a coma sometimes isn't it?!!