DA Accountants - Tax Credits

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Tax Credits/Child Benefit

Rates and thresholds

The rates and thresholds of the tax credits are shown below.

Working Tax Credit - £ 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 - £ 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

Income thresholds and withdrawal rates - £ per year (unless stated)
Rates and Thresholds	2007-08	2008-09
First income threshold	£5,220	£6,420
First withdrawal rate (per cent)	37%	39%
Second income threshold	£50,000	£50,000
Second withdrawal rate (per cent)	6.67%	6.67%
First threshold for those entitled to Child Tax Credit only	£14,495	£15,575
Income disregard	£25,000	£25,000

Child Benefit/Guardian Allowance - £ per week
Rates	2007-08	2008-09
Eldest/Only Child	£18.10	£18.80
Other Children	£12.10	£12.55
Guardian’s Allowance	£12.95	£13.45