The Inland Revenue is administering these new tax credits. The credits aim to put all the income-based benefit support for children into one payment, the Child Tax Credit (CTC) for families with children. The credit will be paid directly into the bank account of the person responsible for caring for the children (the main carer). Child benefit will still be paid.

In addition the system of support for working adults, the Working Families and Disabled Person's Tax Credits, is replaced by Working Tax Credit (WTC). WTC provides support to working families with or without children. It can include a disability and childcare element. It will be paid to employees through their wages. Self-employed people will get it directly from the Inland Revenue. The childcare element goes direct to the carer with CTC.

The amount of tax credit paid depends upon your income for the year 2001/2002. You can claim WTC and/or CTC on claim form TC600 or claim online at www.inlandrevenue.gov.uk/taxcredits.

Your local Citizens Advice Bureau can provide further advice about the new tax credits.