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Tax Rates & Allowances

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Tax Credits

 

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%).