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Second income threshold	Withdrawn	£40,000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).