Working & Child Tax Credits
Working Tax Credit is for people who are employed or self-employed (either on their own or in a partnership), who
- usually work 16 hours or more a week
- are paid for that work, and
- expect to work for at least 4 weeks
and who are
- aged 16 or over and responsible for at least one child, or
- aged 16 or over and disabled or
- aged 25 or over and usually work at least 30 hours a week
- aged 50 or over must have been unemployed and in receipt of benefits for 6 months leading up to the claim and work 16 hours per week or more
- aged 60 or over and work 16 hours per week or more
Child Tax Credit is for people who are responsible for at least one child or qualifying young person. Child Tax Credit is paid direct to the person who is mainly responsible for caring for the child or children. If you are a lone parent you will receive the payment. Child Tax Credit can be paid to workers who continue to pay UK National Insurance Contributions when posted from the UK to work in another country in the European Economic Area.
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Working and child tax credits rates
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£ per year (unless stated)
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2010-11
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2011-12
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Working Tax Credit
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Basic element
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£1,920
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£1,920
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Couple and lone parent element
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£1,890
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£1,950
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30 hour element
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£790
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£790
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Disabled worker element
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£2,570
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£2,650
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Severe disability element
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£1,095
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£1,130
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50+ Return to work payment (16-29 hours)
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£1,320
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£1,365
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50+ Return to work payment (30+ hours)
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£1,965
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£2,030
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Childcare element of the Working Tax Credit
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Maximum eligible cost for one child
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£175 pw
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£175 pw
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Maximum eligible cost for two or more children
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£300 pw
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£300 pw
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Percentage of eligible costs covered
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80%
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70%
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Child Tax Credit
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Family element
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£545
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£545
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Family element, baby addition*
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£545
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n/a
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Child element
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£2,300
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£2,555
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Disabled child element
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£2,715
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£2,800
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Severely disabled child element
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£1,095
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1,130
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Income thresholds and withdrawal rates
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First income threshold
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£6,420
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£6,420
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First withdrawal rate
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39%
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41%
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Second income threshold
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£50,000
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£40,000
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Second withdrawal rate
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6.67%
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41%
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First threshold for those entitled to Child Tax Credit only
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£16,190
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£15,860
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Income disregard
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£25,000
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£10,000
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* The baby element of the Child Tax Credit will be removed from April 2011.
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Disclaimer
The content and advice is for information only. Last updated 08.06.2011.
For up to date information and advice, based on your specific circumstances, please contact us.
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