Confusion about status, rights to various tax breaks/benefits

We've just sent in our SETM and now I'm pondering the future..assuming all goes well.

Up to this point, I've heard that as we (we being me, the housewife, and 2 little kids) are married to a british citizen, we qualify for child tax credit, working tax credit, child benefit, etc.  Being nervous people, we decided to make do without the extra money, paranoid that it would be seen as recourse to public funds.  Looking at this site - http://www.ind.homeoffice.gov.uk/6353/6356/6371/6765/Section7Annexes/IDIChap1Sec7AnnexW.pdf - it would seem that once we get our 'indefinite leave to remain', which I take to be synonymous with permanent residency, we really will qualify. 

So, I suppose my questions are:
1.  What does 'permanent residency' mean in practical terms--how is it different than temporary residency and naturalized citizenship?
2.  Am I right in thinking that we could have applied for tax breaks a long time ago, and that we definitely can once our applications come back approved?
3.  Is it possible to claim tax credits that were owed from the last 2 years?  Would this cause more pain than it's worth?

Any insights would be appreciated. 
Lanna in Kirkcaldy

if the kids are not EU/EEA or UK nationals, and did not have ILE, then no, they would not have been eligible for a person to claim any tax credit on them, nor would it have been legal for you to have applied for Child Tax Credit to stay home w/them.

you can apply for tax breaks as soon as you get ILE - beware!  they are clamping down on this and on who is eligible to claim this b/c this system is losing billions, so do it all in writing and keep all paperwork.

working tax credit tops out at about £14,000/pa unless the employee is registered disabled.  it is mean to lift families above the poverty line of £10,000/pa.

Hmm..I wish the government's websites would be more specific about the kids--I never ran across anything that mentioned what their status had to be.  Our kids are not biologically my husbands; their birth father died and my husband has not legally adopted them.  I suppose once our immigration stuff goes through it won't matter, and I don't really care about the tax credits, but he *has* been caring for them for so long...

Child tax credit to stay home with them..what's this?  I was under the impression that only 'working' people got to apply for credits.

Sorry, ILE?  I assume you mean ILR, but I'm neurotic so I want to be sure..

Thank you for the advice!

Our kids are not biologically my husbands

Then you won't be able to claim on them at all until they have ILE, that's what it's called now.

And you don't get child tax credit to stay home w/them, you just get it as a function of your total income as a family, and so of course if the kids stay w/a registered child minder and both parents work you get more tax credit.  Again, this is means-tested.

A person needs to be working at least 16 hours/week to apply for working tax credit.  Again, it is joint application.  ANYONE who applies for either - and it's all one form - who is part of a domestic partnership must list both applicants and their assets/income on the form.

It's important to realise that this is NOT designed to be a cash cow.  It is a benefit - it's just given another name to take away the stigma.  Hence, working tax credit tops out at a fairly low income/family - again, the threshhold is higher for a registered disabled working person - b/c it's design is to lift families out of what is officially considered poverty AND to assist working poor families w/childcare costs, hence, the amount decreases sharply for school-aged children b/c they do not require all-day childcare.

It's important to realise that this is NOT designed to be a cash cow.

I hope I didn't give the impression that I was after one.  It's clear now that we don't qualify for working tax credit in any case.  That said, we don't make so much money that help isn't appreciated, and we would probably qualify for child tax credit.  Besides, the child benefit isn't means tested, is it? 

Besides, the child benefit isn't means tested, is it? 

Nope.  And you can apply as soon as you and the kids have ILE.