If you are claiming disability benefits for yourself or your child, you may qualify for extra tax credits on top of the other benefits you are getting. Some disability benefits are also taken into account when the Tax Credit Office works out how much tax credits you’re entitled to.

On this page:

• What are the benefits that can help you qualify for extra tax credits?
• How much will you get?
• How your disability benefits are taken into account
• Benefits that might be reduced if you start getting tax credits
• More useful links

What are the benefits that can help you qualify for extra tax credits?

There are different benefits that count, depending on who has the disability.

If you – or your partner – has a disability

Either of the following needs to apply:

• you need to be getting - or have recently been getting - a ‘qualifying' sickness or disability benefit
• either you or your partner gets the Highest Rate Care Component of Disability Living Allowance or the Higher Rate of Attendance Allowance

Examples of qualifying sickness or disability benefits that you might be getting, or have been getting recently, include the following:

• a benefit you are currently receiving, such as Disability Living Allowance or Attendance Allowance
• a benefit that was paid for at least one day in the last six months, like Council Tax Benefit with a Disability Premium or Higher Pensioner Premium for you
• you have been 'training for work' for at least one day in the last eight weeks and in the eight weeks before you started training for work you must have been getting one of a number of benefits, for example Severe Disablement Allowance

Find out more about other qualifying benefits if you have a disability (PDF 116K)

If your child has a disability

You can get extra Child Tax Credit if your child gets Disability Living Allowance or the Highest Rate Care Component of Disability Living Allowance. This still applies even if the Allowance has stopped because your child is in hospital.

You have a child with a disability - can you get extra Child Tax Credit?

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How much will you get?

In this tax year (6 April 2010 to 5 April 2011), on top of your basic tax credits you could get:

• £2,570 a year, that is around £49 a week, if you are disabled
• £3,665 a year, that is around £70 a week, if you are severely disabled
• £2,715 a year, that is around £52 a week, if your child is disabled
• £3,810 a year, that is around £73 a week, if your child is severely disabled

The amount of tax credits you are paid depends on other income you have coming in. The higher your income, the lower your tax credits payments.

To find out more about how much you might get, use the detailed online questionnaire or call the Tax Credit Helpline.

Find out how much you can get using an online tax credits questionnaire

Contact the Tax Credit Helpline

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How your disability benefits are taken into account

When you make a claim for tax credits your income is worked out by adding together things like wages, interest on savings and some benefits.

Disability benefits that don't count towards your income

These benefits don't count towards your income when your tax credits are worked out:

• Disability Living Allowance
• Attendance Allowance
• Incapacity Benefit (at the short term lower rate paid for the first 28 weeks)
• income-related Employment and Support Allowance
• Severe Disablement Allowance
• Industrial Injuries Disablement Benefit

Disability benefits that do count towards your income

These benefits do count towards your income when your tax credits are worked out:

• Incapacity Benefit paid at short term higher or long term rates - 29 weeks or more
• contribution-based Employment and Support Allowance
• Carer's Allowance

More about which state benefits you need to report when making a tax credits claim

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Benefits that might be reduced if you start getting tax credits

Disability benefits like Disability Living Allowance, Attendance Allowance and Incapacity Benefit won't be reduced when you start getting tax credits.

Other benefits you or your partner might be getting, such as Carer's Allowance, should not be affected by your tax credits.

However, some benefits will be reduced if your income goes up and you will need to report any increase in income you have when you start getting tax credits.

Council Tax Benefit and Housing Benefit

Council Tax Benefit and Housing Benefit will probably be reduced if your income increases. You should let the following people know as soon as you start getting tax credits:

• If you're in England - your local council.
• If you're in Northern Ireland and are a tenant you need to let the Northern Ireland Housing Executive know. But if you're an owner-occupier you need to let the Land and Property Services know instead.

But make sure whoever pays your Council Tax Benefit or Housing Benefit knows that you, or someone in your family, are disabled. You may be entitled to more Council Tax or Housing Benefit.

Find your local council on Directgov

Find Northern Ireland contact details on the Land and Property Services website

Get Northern Ireland Housing Executive contact details on their website

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More useful links

How to claim tax credits

Changes that affect your tax credits

Find out about financial support for disabled people on Directgov

Information on caring for someone on Directgov

http://www.hmrc.gov.uk/taxcredits/payments-entitlement/other-benefits/af...