RMH Associates
Business & Accountancy Services
Tax Credits
WORKING TAX CREDIT £ per year 2007/08 2008/09 Basic element £1,730 £1,800 Couple and lone parent element £1,700 £1,770 30 hour element £705 £735 Disabled worker element £2,310 £2,405 Severe disability element £980 £1,020 50+ return to work payment (16-29 hours) £1,185 £1,235 50+ return to work payment (30+ hours) £1,770 £1,840 CHILDCARE ELEMENT OF THE WORKING TAX CREDIT 2007/08 2008/09 50+ return to work payment (30+ hours) £175 per week £175 per week Maximum eligible cost for two children £300 per week £300 per week Per cent of eligible childcare costs covered 80% 80% CHILD TAX CREDIT £ per year 2007/08 2008/09 Family element £545 £545 Family element, baby addition £545 £545 Child element £1,845 £2,085 Disabled child element £2,440 £2,540 Severely disabled child element £980 £1,020 TAX CREDIT INCOME THRESHOLDS AND WITHDRAWAL RATES 2007/08 2008/09 First income threshold £5,220 £6,420 First withdrawal rate (per cent) 37% 39% 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 £14,495 £15,575 Income disregard £25,000 £25,000 CHILD BENEFITS/GUARDIAN'S ALLOWANCE RATES £ per year 2007/08 2008/09 Eldest/only child £18.10 £18.80 Other children £12.10 £12.55 Guardian's Allowance £12.95 £13.45