Tax credit rates
The following rates apply for child tax credit and working tax credit.
Child Tax Credit
| £ per year (unless stated) | 2007/08 | 2006/07 |
|---|
| Family element | 545 | 545 |
| Family element, baby addition | 545 | 545 |
| Child element | 1,845 | 1,765 |
| Disabled child element | 2,440 | 2,350 |
| Severely disability child element | 980 | 945 |
Income thresholds and withdrawal rates
| £ per year (unless stated) | 2007/08 | 2006/07 |
|---|
| First income threshold | 5,220 | 5,220 |
| First withdrawal rate (per cent) | 37 | 37 |
| Second income threshold | 50,000 | 50,000 |
| Second withdrawal rate (per cent) | 6.67 | 6.67 |
| First threshold for those entitled to Child Tax Credit only | 14,495 | 14,155 |
| Income disregard | 25,000 | 25,000 |
Working Tax Credit
| £ per year (unless stated) | 2007/08 | 2006/07 |
|---|
| Basic element | 1,730 | 1,665 |
| Couple and lone parent element | 1,700 | 1,640 |
| 30 hour element | 705 | 680 |
| Disabled worker element | 2,310 | 2,225 |
| Severe disability element | 980 | 945 |
| 50+ return to work payment (16-29 hours) | 1,185 | 1,140 |
| 50+ return to work payment (30+ hours) | 1,770 | 1,705 |
Childcare element of the Working Tax Credit
| £ per year (unless stated) | 2007/08 | 2006/07 |
|---|
| Maximum eligible cost for one child | 175 per week | 175 per week |
| Maximum eligible cost for two or more children | 300 per week | 300 per week |
| Percentage of eligible costs covered | 80% | 80% |
This page was last reviewed on 16 April 2007. The information may not reflect changes in legislation made after this date.
This is only a guide to your tax position and should not be relied on in place of professional accounting or tax advice. Any calculated figures are illustrative and are based on the data you provided.
