From 6 April 2017, a two child limit policy was introduced to child tax credit which limits the amount of child tax credit awards. This page explains how the policy works and the exceptions.

Tax credits are worked out using yearly rates and yearly income figures. We explain how disregards work, which year’s income is used, what to do if the estimate is wrong and what to do when your income changes.

The amount and type of income you have will affect how much tax credits you might get. The rules are the same for child tax credit, working tax credit or both. This page explains what counts as income for tax credits.

Tax credit awards are made up of a number of elements. The amount of any award depends on the elements that are included in the award and the household income.

Child tax credit is paid by HM Revenue and Customs (HMRC) to support families with children. It is paid independently of child benefit and is payable whether you are working or not.

Working tax credit is paid by HM Revenue & Customs (HMRC) to support people who work and are on a low income. It does not matter whether you are an employee or self-employed.