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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| Second income threshold | Withdrawn | £40,000 |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).
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