Tax Credits

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2011/12
£

2010/11
£

Working Tax Credit

Basic element – max.

1,920

1,920

Childcare element
70% (80%) of eligible costs up to £175 per week (£300 if two or more children).
Child Tax Credit (CTC)

Child element per child – max.

2,555

2,300

Family element

545

545

Baby addition

-

545

Reductions in maximum rates

41% (39%) of income above £6,420* p.a.

*If only CTC is claimed, the threshold is £15,860 (£16,190) p.a. The family element of CTC is not reduced unless income is more than £40,000 (£50,000) p.a. when the withdrawal rate is 41% (6.67%).

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