Tax credits
Changes to tax credits from 2012
| Working tax credit |
| |
2012/13 |
2011/12 |
| Basic element |
£1,920 |
£1,920 |
| Couple and lone parent element |
£1,950 |
£1,950 |
| 30 hour element1 |
£790 |
£790 |
| Disabled worker element |
£2,790 |
£2,650 |
| Severe disability element |
£1,190 |
£1,130 |
| Childcare element of working tax credit |
| Maximum eligible cost for one child |
£175 p.w. |
£175 p.w. |
| Maximum eligible cost for two or more children |
£300 p.w. |
£300 p.w. |
| Percentage of eligible costs covered |
70% |
70% |
| Child tax credit |
| Child tax credit family element |
£545 |
£545 |
| Child element |
£2,690 |
£2,555 |
| Income thresholds and withdrawal rate |
| First income threshold |
£6,420 |
£6,420 |
| First withdrawal rate |
41% |
41% |
| Second income threshold |
Withdrawn |
£40,000 |
| Second withdrawal rate |
41% |
41% |
| First threshold for those entitled to child tax credit only |
£15,860 |
£15,860 |
| Income rise disregard |
£10,000 |
£10,000 |
| Income fall disregard |
- |
£2,500 |
1) This reduces to 16 hours for those 60 and over.
Did you know?
That tax credits are projected to cost £4.2 billion (2011/12 - £4.7 billion).
