Tax Credits

	2008/09	2007/08
Working Tax Credit
Basic Element	£1,800	£1,730
Couple and lone parent element	£1,770	£1,700
30 hour element	£735	£705
Disabled worker element	£2,405	£2,310
Severe disability element	£1,020	£980
Childcare element of Working Tax Credit
Maximum eligible cost for one child	£175 p.w	£175 p.w
Maximum eligible cost for two or more children	£300 p.w	£300 p.w
Percentage of eligible costs covered	80%	80%
Child Tax Credit
Child Tax Credit family element	£545	£545
Family element, baby addition	£545	£545
Child element	£2,085	£1,845
Income Thresholds and Withdrawal Rate
First income threshold	£6,420	£5,220
First withdrawal rate	39%	37%
Second income threshold	£50,000	£50,000
Second withdrawal rate	6.67%	6.67%
First threshold for those entitled to Child Tax Credit only	£15,575	£14,495
Income disregard	£25,000	£25,000