Tax Credits

  2015/16 2016/17
  £ £
Working Tax Credit (WTC)    
Basic element - max. 1,960 1,960
Couple and lone parent element 2,010 2,010
30 hour element 810 810
Disabled worker element 2,970 2,970
Severe disability element 1,275 1,275
50+ Return to work payment
(16-29 hrs)
withdrawn withdrawn
50+ Return to work payment
(30+hrs)
withdrawn withdrawn
Childcare element
Maximum eligible cost for one child £175 per week.
   

Maximum eligible cost for two or more children £300 per week

   

Percentage of eligible costs covered - 70%

   
Child Tax Credit (CTC) 2015/16 2016/17
  £ £
Child element per child - max. 2,780 2,780
Family element 545 545
Disabled child element 3,140 3,140
Severely disabled child element 1,275 1,275

Reductions in maximum rates 41%  of income above £6,420*p.a.

*If only CTC is claimed, the threshold is £16,105 p.a. (2015/16: £16,105). The family element of CTC now tapers immediately after the child element.

The income disregard is £2,500 (2015/16: £5,000) for changes in income betweeen provisional and final income.  From 2012/13 onwards there is a income fall disregard of £2,500.

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