Working and Child Tax Credits

Working and Child Tax Credits (annual)

	2008-09	2007-08
Working Tax Credit
Basic element	£1,800	£1,730
Couple and lone parent element	£1,770	£1,700
30 hour element	£705	£705
Disabled worker element	£2,405	£2,310
Severe disability element	£1,020	£980
50+ Return to work payment (16-29 hours)	£1,235	£1,185
50+ Return to work payment (30+ hours)	£1,840	£1,770

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%	80%

Child Tax Credit
Family element	£545	£545
Family element, baby addition	£545	£545
Child element	£1,085	£1,845
Disabled child element	£2,540	£2,440
Severely disabled child element	£1,020	£980

Income thresholds and withdrawal rates
First income threshold	£6,420	£5,220
First withdrawal rate	39%	37%
Second income threshold	£50,000	£50,000
Second withdrawal rate	6.67%	6.67%
First threshold for those entitled to Child Tax Credit only	£15,575	£14,495
Income disregard	£25,000	£25,000