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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.
Working and child tax credits rates
 
 
£ per year (unless stated)
2010-11
2011-12
Working Tax Credit
 
 
Basic element
 £1,920
£1,920
Couple and lone parent element
 £1,890
£1,950
30 hour element
 £790
£790
Disabled worker element
 £2,570
£2,650
Severe disability element
 £1,095
£1,130
50+ Return to work payment (16-29 hours)
 £1,320
£1,365
50+ Return to work payment (30+ hours)
 £1,965
£2,030
Childcare element of the Working Tax Credit
 
 
Maximum eligible cost for one child
 £175 pw
£175 pw 
Maximum eligible cost for two or more children
 £300 pw
£300 pw 
Percentage of eligible costs covered
 80%
70% 
Child Tax Credit
 
 
Family element
 £545
£545
Family element, baby addition*
 £545
 n/a
Child element
 £2,300
£2,555
Disabled child element
 £2,715
£2,800
Severely disabled child element
 £1,095
1,130
Income thresholds and withdrawal rates
 
 
First income threshold
 £6,420
£6,420 
First withdrawal rate
 39%
 41%
Second income threshold
 £50,000
 £40,000
Second withdrawal rate
 6.67%
 41%
First threshold for those entitled to Child Tax Credit only
 £16,190
 £15,860
Income disregard
 £25,000
 £10,000
 
* The baby element of the Child Tax Credit will be removed from April 2011.
 
 
 

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.

We cannot be held responsible for actions taken with reference to the content contained on this website.

 


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