Single parents and couples can claim child tax credits for each of their children. To qualify, household income must be £58,000 or less. This amount will reduce to £41,329 from 6th April 2011 and there are plans to reduce the figure from 5th April 2012 to £30,000.
The amount of benefit paid is dependent on the number of children in the family, whether they have disabilities, and the total family income. It will be paid direct to the person who cares for the children. If your household income is £50,000 then you will receive around £1,500 in tax credits. If it is lower than this then the payment will be higher.
But beware – the tax credits need to be applied for through a complex form, they need to be renewed each year, and if you are overpaid tax credits then HMRC will request repayment from you.
Speak to your accountant about claiming child tax credits in the first instance. They will be able to complete the application for you for a modest fee. Details are also available at http://taxcredits.hmrc.gov.uk/