RMH Associates
Business & Accountancy Services

Tax Credits


WORKING TAX CREDIT
£ per year2007/082008/09
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
 2007/082008/09
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 covered80%80%
CHILD TAX CREDIT
£ per year2007/082008/09
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
 2007/082008/09
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 year2007/082008/09
Eldest/only child£18.10£18.80
Other children£12.10£12.55
Guardian's Allowance£12.95£13.45