Tax Credits

Working Tax Credit (WTC) - £ per year (unless stated)
Rates and Thresholds	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 - £ per year (unless stated)
Rates and Thresholds	2007-08	2008-09
Maximum eligible cost for one child	£175 per week	£175 per week
Maximum eligible cost for two or more children	£300 per week	£300 per week
Percentage of eligible costs covered	80%	80%

Child Tax Credit (CTC) - £ per year (unless stated)
Rates and Thresholds	2007-08	2008-09
Child Tax Credit 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

Reductions in maximum rates 39% (37%) of income above £6,420* (£5,220*) p.a.

*If only CTC is claimed, the threshold is £15,575 p.a. (£14,495). The family element of CTC is not reduced unless income is more than £50,000 p.a. when it is reduced by £1 for every £15 of additional income.