Working Tax Credit by icm53670

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									                                                 Working tax credit and Child tax credit rates                         £ per year, except maximum childcare expend

                                                          2003-2004           2004-2005
Working Tax Credit
Basic Element                                                  1,525               1,570
Extra for couples and lone parents                             1,500               1,545
30 hour elementa                                                 620                 640
Disabled worker element                                        2,040               2,100
Enhanced disabled adult element                                  865                 890
Maximum eligible childcare expenditure                          135                  135
Maximum eligible childcare expenditure, 2 or
                                                                200                  200
more children
Childcare subsidy                                               70%                 70%

Child Tax Credit
Family element                                                  545                 545
Family element, extra for child under 12
                                                                545                 545
months
Child element                                                 1,445               1,625
Disabled child additional element                             2,155               2,215

Enhanced disabled child additional element                      865                 890


Common Elements
First threshold                                              5,060                5,060
First withdrawal rate                                          37%                  37%
Second threshold                                             50,000               50,000
Second withdrawal rate                                          7%                   7%
First threshold if not entitled to Working Tax
                                                             13,230               13,480
Credit




                                                       Note: The new tax credits were introduced in April 2003.

                                                       Footnotes
                                                       (a) Applicable if either the applicant or the applicant's partner works more than 30 hours per week

                                                       Source: Inland Revenue,            http://www.inlandrevenue.gov.uk/rates/taxcredits.htm
             £ per year, except maximum childcare expenditure, which is £ per week




nt's partner works more than 30 hours per week

revenue.gov.uk/rates/taxcredits.htm
                                                    Working families' tax credit rates                                     £ per week

                                                      1999-2000      2000-2001           2001-02        2002-03
Basic Credit
Adult (couple/lone parent)                                  52.30            53.15            59.00c        62.50c
                  a
30 hour premium                                             11.05            11.25             11.45         11.65

Child Element
Aged 0-11                                                   19.85           25.60c            26.00          26.45
           b
Aged 11-16                                                  20.90           25.60c            26.00          26.45
Aged 16-18                                                  25.95            26.35            26.75          27.20
Maximum eligible childcare expenditure                      70.00            70.00          135.00c         135.00
Maximum eligible childcare expenditure, 2 or more
                                                           105.00          105.00           200.00c         200.00
children
Childcare subsidy                                            70%              70%               70%           70%

Applicable Amounts
Couple/Lone Parent                                          90.00            91.45            92.90          94.50
Wihtdrawal rate                                              55%              55%              55%            55%




                                                         Note: Working Families' Tax Credit was introduced in October 1999 to replace Family Credit.
                                                         It was integrated into the Child Tax Credit and Working Tax Credit in April 2003 (see WTC
                                                         and CTC        ).
                                                         From April 2001, a higher rate became payable for disabled children (see DPTC         ) and in
                                                         April 2003 the Disabled Person's Tax Credit replaced this part of the WFTC.

                                                         Footnotes
                                                         a: Applicable if either the applicant or the applicant's partner works more than 30 hours per
                                                         week
                                                         b: A child counts as 16 from the September following his or her 16th birthday
                                                         c: From June

                                                         Source: Child Poverty Action Group , Welfare Benefits Handbook (various years). Inland
                                                         Revenue,         http://www.inlandrevenue.gov.uk/rates/taxcredits.htm
 r 1999 to replace Family Credit.
Credit in April 2003 (see WTC

children (see DPTC       ) and in
 t of the WFTC.


works more than 30 hours per

 er 16th birthday


book (various years). Inland
                Family credit rates
Date               Adult Credit        30-hour credita                                 Child Creditb

                                                              under 11            11-15            16-17
April-1988                   32.10                     -               6.05            11.40               14.70
April-1989                   33.60                     -               7.30            12.90               16.35
April-1990                   36.35                     -               8.25            14.15               17.80
April-1991                   38.30                     -               9.70            16.10               20.05
April-1992                   41.00                     -              10.40            17.25               21.45
April-1993                   42.50                     -              10.75            17.85               22.20
April-1994                   44.30                     -              11.20            18.55               23.05
April-1995                   45.10                 10.00              11.40            18.90               23.45
April-1996                   46.45                 10.30              11.75            19.45               24.15
April-1997                   47.65                 10.55              12.05            19.95               24.80
                                                                                under 11           11-16
April-1998                   48.80                 10.80                               12.35               20.45
November-1998                48.80                 10.80                               14.85               20.45
April-1999                   49.80                 11.05                               15.15               20.90




                   Footnotes
                   (a) Introduced July 1995
                   (b) From 7 October 1997 the age bandings for classification of dependent children changed:
                   From birth until September following 11th birthday;
                   From September following 11th birthday until September following 16th birthday;
                   From September following 16th birthday until the day before 19th birthday.
                   Some children remained eligible for a different rate of benefit and have "protected rights":
                   Child aged 11 before 7/10/97 - allowance £20.45
                   Child aged 16 before 7/10/97 - allowance £25.40
                   Child aged 18 before 7/10/97 - allowance £35.55

                   Source: Department of Social Security; Department for Work and Pensions (various years),
                   Social Security Statistics (various years), London: Government Statistical Service.
                                                          £ per week
                 b                        Applicable
  Child Credit
                                           Amount
                             18
                                  21.35           51.45
                                  23.30           54.80
                                  25.10           57.60
                                  27.95           62.25
                                  29.90           66.60
                                  31.00           69.00
                                  32.20           71.70
                                  32.80           73.00
                                  33.80           75.20
                                  34.70           77.15
                            16-18
                                  25.40           79.00
                                  25.40           79.00
                                  25.95           80.65




endent children changed:




Pensions (various years),
             Family income supplement
Date                                                    Prescribed amount                                                                  Maximum Rate Payable
                                                    Number of children in family                                                             Number of children
                 1              2               3              4             5             6                 Each             1
                                                                                                        additional child

8/3/1971             18.00       20.00           22.00           24.00        26.00         28.00                  2.00            4.00
4/4/1972             20.00       22.00           24.00           26.00        28.00         30.00                  2.00            5.00
4/3/1973             21.00       23.50           26.00           28.50        30.50         32.50                  2.00            5.00
10/2/1973            21.50       24.00           26.50           29.00        31.50         34.00                  2.50            5.00
7/23/1974            25.00       28.00           31.00           34.00        37.00         40.00                  3.00            5.50
7/22/1975            31.50       35.00           38.50           42.00        45.50         49.00                  3.50            7.00
7/20/1976            39.00       43.50           48.00           52.50        57.00         61.50                  4.50            8.50
05/04/77a            39.00       42.50           46.00           49.50        53.00         56.50                  3.50           85.00
7/19/1977            41.50       45.00           48.50           52.00        55.50         59.00                  3.50            8.50
11/15/1977           43.80       47.80           51.80           55.80        59.80         63.80                  4.00            9.50
11/14/1978           46.00       50.00           54.00           58.00        62.00         66.00                  4.00           10.50
11/13/1979           56.00       60.50           65.00           69.50        74.00         78.50                  4.50           13.50
11/25/1980           67.00       74.00           81.00           88.00        95.00        102.00                  7.00           17.00
11/24/1981           74.00       82.00           90.00           98.00       106.00        114.00                  8.00           18.50
11/23/1982           82.50       91.50          100.50          109.50       118.50        127.50                  9.00           21.00
11/22/1983           85.50       95.00          104.50          114.00       123.50        133.00                  9.50           22.00
11/20/1984           90.00      100.00          110.00          120.00       130.00        140.00                 10.00           23.00

                                              Prescribed Amounts                                                                          Maximum Weekly Rates

                        Family with 1 child                     Increase per additional child                       Family with 1 child
              Under 11        11-15            16+          Under 11        11-15         16+              Under 11        11-15
11/26/1985        97.50          98.50           99.50           11.50         12.50            13.50            25.00         25.50
7/28/1986         98.60          99.60          100.60           11.65         12.65            13.65            25.30         25.80
4/6/1987         100.70         101.75          102.80           11.90         12.95            14.00            25.85         26.40




                Note: Family Income Supplement payable = ½ × (Prescribed Amount - Gross Income) up to
                maximum rate

                Footnote
                (a) Child Benefit (introduced April 1977) was disregarded for the purpose of FIS; thus the
                addition to the prescribed amount for each child after the first was reduced to offset partially
                the amount of Child Benefit disregarded. Family Allowance had not been disregarded in
                calculating FIS.

                Source: Department of Social Security (1988), Social Security Statistics 1988, London:
                Government Statistical Service.
                                                             £ per week
                     Maximum Rate Payable
                       Number of children
                        2            3          Each
                                              additional
                                                child
                          4.00         4.00              .
                          5.00         5.00              .
                          5.00         5.00              .
                          5.00         6.00              .
                          5.50         7.00              .
                          7.50         8.00           0.50
                          9.00         9.50           0.50
                          9.00         9.50           0.50
                          9.00         9.50           0.50
                         10.50        11.50           1.00
                         11.50        12.50           1.00
                         14.50        15.50           1.00
                         18.50        20.00           1.50
                         20.00        21.50           1.50
                         23.00        25.00           2.00
                         24.00        26.00           2.00
                         25.00        27.00           2.00

                 Maximum Weekly Rates

amily with 1 child                   Increase per additional child
                       16+       Under 11       11-15           16+
                         26.00         2.50           3.00           3.50
                         26.30         2.55           3.05           3.55
                         26.90         2.60           3.15           3.65
            Family income supplement, family credit and WFTC recipients

Date         Recipients (thousands)         Average Award (£)
9/28/1971                         55                           1.73
4/25/1972                         89                           2.39
4/24/1973                         87                           2.61
4/30/1974                         76                           2.24
4/29/1975                         57                           2.82
4/27/1976                         60                           3.47
4/26/1977                         84                           4.88
4/25/1978                         96                           5.58
4/24/1979                         78                           5.17
4/29/1980                         88                           7.85
4/28/1981                        112                           9.95
4/27/1982                        143                          10.54
4/26/1983                        186                          12.00
4/24/1984                        203                          12.20
4/30/1985                        199                          12.20
4/29/1986                        200                          13.50
4/28/1987                        220                          15.20
4/11/1988                        213                          15.74
4/30/1989                        286                          25.20
1/31/1990                        300                          27.51
1/31/1991                        315                          30.35
1/31/1992                        350                          34.82
2/28/1993                        474                          42.28
2/28/1994                        529                          46.04
2/28/1995                        595                          49.79
2/29/1996                        667                          54.98
2/28/1997                        734                          56.92
2/28/1998                        760                          58.90
2/28/1999                        788                          61.83
2/28/2000                        989                          70.77
2/28/2001                       1182                          79.58
2/28/2002                       1269                          83.14
2/28/2003                       1427                          86.33


                Note: Figures for Family Income Supplement 1971-1988, then Family Credit

                Source: Department of Social Security (various years), Social Security Statistics,
                London: Government Statistical Service, Inland Revenue (various years).

								
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