Our main guide to tax credits is available by clicking here.

Useful links

The National Union for Students (NUS) has excellent Welfare information sheets including one supplying help on claiming tax credits if you are a student.

At present the online tax credit claim system is unavailable, however you can find out more information about whether you will qualify for tax credits and a calculator on the HMRC tax credits website.

Who can claim?

As the tax credit system has replaced parts of the student support system it is important that you apply for any tax credits to which you are entitled.

To qualify you must be aged 16 or over and live in the United Kingdom. Foreign students from outside the EEA are unlikely to qualify because of work restrictions in their visas and limits on access to public funds. Further details on residence and immigration requirements for tax credits eligibility can be found here.

Students can claim Child Tax Credit if they:

• are a lone parent with one or more children; or
• are in a couple and have one or more children; or
• are responsible for at least one child who is 'normally living' with the claimant; and
• have children who are under 16, or under 19 and in full-time non-advanced education; and
• are not subject to immigration control.

You do not have to be working to claim Child Tax Credit.

Students can claim Working Tax Credit if they:

• are 16 or over, have children and are working at least 16 hours a week, or
• are 16 or over, have a disability and are working at least 16 hours a week; or
• are over 25 and working 30 hours a week; or
• are 50 or over, have been claiming Income Support, Jobseekers Allowance or Incapacity Benefit for at least 6 months, and are now working more than 16 hours a week; and
• are not subject to immigration control.

If you are a student nurse you must have employment of 16 hours per week in addition to your nursing work to be eligible for Working Tax Credit. If your only income is from a NHS Bursary you will not be entitled to receive the credit. Foreign nursing students are unlikely to qualify because of work restrictions in their visas and limits on access to public funds.

How does my income affect my claim?

The amount you can claim will depend on the level of your income. Any applications made after 6 April 2008 will be assessed on the income you received in the previous tax year 2007/08 (year ended 5 April 2008).

The Revenue can reassess your claim if your income in the tax year for which you are claiming is likely to increase by more than £25,000 or decrease by any amount compared to the income in the tax year on which you are being assessed. This only applies once you have made your initial claim and you may then contact the Revenue to be re-assessed - but are not obliged to do so.

As a result if you were in paid work prior to becoming a student and you believe that this income would reduce or eliminate any tax credit, you should still apply if your current level of income will make you eligible.

The majority of student income is ignored or "disregarded" in calculating your entitlement. Only some grants and allowances for dependants are included as income plus some elements of the Career Development Loan. A full list is in the guidance booklet that comes with your claim form.

The following are classed as income for the purposes of claiming tax credits:

• Adult dependant's grant
• Career Development Loan - amount paid for living expenses
• Dependants grant
• Lone parents grant
• Two homes grant

The following are all disregarded in working out your income for tax credits:

Higher Education

• Grants for tuition fees;
• Student Loans Company loans (repayments of loans are not allowable deductions)
• Childcare grant;
• School meals grant;
• Travel, books and equipment grant;
• Disabled students allowance;
• Travelling expenses;
• Postgraduate studentships from any research council;
• NHS bursaries, dependants allowances and travel expenses;
• Hardship fund monies and loans;
• Maintenance payments.

Further Education

• Education Maintenance Allowances;
• Care to Learn grants;
• Hardship fund monies;
• Two homes allowance;
• Residential bursaries;
• Childcare bursaries.

Other income that is included:

• Social Security benefits (excluding Child Benefit and some others)
• Any wages or salary earned whilst employed
• Profits from a business
• Dividends from shares
• Other investments income
• Pensions

Note that £300 of pensions and investment income is disregarded.

There is no specific section on the claim form for a student's income so it should be noted in 'Other'. Only enter that part of your income, which is assessable. Your students' union adviser should be able to help you if you have a problem or you can contact the Revenue.

Some students may in fact be worse off as a result of the new system - have a look at page 8 of the NUS leaflet mentioned above for a list.

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Examples

• There are some useful examples you can have a look at. They are in the Revenue leaflet Working Tax Credit & Child Tax Credit - a guide WTC2. This is a comprehensive guide to the new tax credits and is worth a read as it also includes examples of tax credit calculations. You can also get the leaflet from your local tax office.

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Helplines

The main helpline is open from 8am - 8pm seven days a week on 0845 300 3900

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