|
|
What
are tax credits?
Tax credits are payments from the government. If you're responsible
for at least one child or young person who normally lives with
you, you may qualify for Child Tax Credit. If you work, but earn
low wages, you may qualify for Working Tax Credit.
Who can get tax credits?
Nine out of ten families with children qualify for tax credits,
but you don't need to have children to claim. You may also qualify
if you are working and on a low income.
You don't work but have children: entitlement
tables
There are tables that can give you a rough idea
of how much tax credits you can get if you have children and
you (and your partner, if you have one) don't work. You will
still need to meet the normal qualifying rules, like being responsible
for a child.
You have children aged one or over
The amounts shown are the actual amount of tax credits you could
get for the year.
| Annual income £ |
One child |
Two children |
Three children |
| 0 |
2,780 |
5,020 |
7,255 |
| 5,000 |
2,780 |
5,020 |
7,255 |
| 8,000 |
2,780 |
5,020 |
7,255 |
| 10,000 |
2,780 |
5,020 |
7,255 |
| 15,000 |
2,780 |
5,020 |
7,255 |
| 20,000 |
1,240 |
3,475 |
5,715 |
| 25,000 |
545 |
1525 |
3765 |
| 30,000 |
545 |
545 |
1815 |
| 35,000 |
545 |
545 |
545 |
| 40,000 |
545 |
545 |
545 |
| 45,000 |
545 |
545 |
545 |
| 50,000 |
545 |
545 |
545 |
| 55,000 |
210 |
210 |
210 |
| 60,000 |
0 |
0 |
0 |
Children with disabilities - can you get extra tax credits?
If your child has a disability, or if you're responsible
for a child with a disability, you may qualify for extra
tax credits, to help cover the cost of looking after them.
Who can get the extra money?
You can get extra tax credits if any one of the following
applies:
* you get Disability Living Allowance for your child
* your child is registered blind
* your child came off the blind register in the 28 weeks before you claimed
tax credits
If your child is severely disabled and gets what's known
as the Highest Rate Care Component of Disability Living
Allowance you may get an additional payment.
You can still qualify for the extra money even if the Disability
Living Allowance stops because your child goes into hospital.
How much will you get?
The amount of extra tax credits you get depends on how
much care your child needs. In this tax year - 6 April 2009
to 5 April 2010 - you could get approximately:
* £2,670 a year, that is around £51
a week, if your child is disabled
* £3,745 a year, that is around £72 a week,
if your child is severely disabled
The amount you get also depends on other money you have
coming in:
* Disability Living Allowance doesn't count as income
when your tax credits are worked out
* Other benefits like Carer's Allowance do count as income and can reduce your
tax credit payments
To find out more about how much you may get, call the Tax
Credit Helpline on 0845 300 3900, textphone 0845 300 3909
or use the online questionnaire.
When your tax credits claim can be backdated
Depending on your circumstances the Tax Credit Office may pay
tax credits for up to three months before the date on which they
got your claim form. This is known as backdating your claim. Sometimes
your claim for an extra amount of tax credits because you have
a disability can be backdated for more than three months.
Rates and Allowances - 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) |
|
|
April 2009 |
| |
£1,800 |
£1,890 |
Couple and lone parent element
|
£1,770 |
£1,860 |
| |
£735 |
£775 |
| |
£2,405 |
£2,530 |
Severe disability element
|
£1,020 |
£1,075 |
50+ Return to work payment (16-29 hours)
|
£1,235 |
£1,300 |
50+ Return to work payment (30+ hours)
|
£1,840 |
£1,935 |
Top
Childcare element of the Working Tax Credit - £ per year (unless
stated) |
|
|
April 2009 |
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% |
Top
Child Tax Credit - £ per year (unless stated) |
|
|
April 2009 |
Child Tax Credit Family element
|
£545 |
£545 |
Family element, baby addition
|
£545 |
£545 |
| |
£2,085 |
£2,235 |
| |
£2,540 |
£2,670 |
Severely disabled child element
|
£1,020 |
£1,075 |
Top
Income thresholds and withdrawal rates - £ per year (unless stated)
|
|
|
April 2009 |
| |
£6,420 |
£6,420 |
First withdrawal rate (per cent)
|
39% |
39% |
| |
£50,000 |
£50,000 |
Second withdrawal rate (per cent)
|
6.67% |
6.67% |
First threshold for those entitled to Child Tax Credit only
|
£15,575 |
£16,040 |
| |
£25,000 |
£25,000 |
Top
Child Benefit - £ per week
|
|
|
Jan 2009 |
| |
£18.80 |
£20.00 |
| |
£12.55 |
£13.20 |
Guardian Allowance - £ per week
|
|
|
April 2009 |
| |
£13.45 |
£14.10 |
Top
Tax data is brought to you by
A and P Business Solutions Ltd
Click
here to subscribe to our free e-zine
|
