Tax Credits

TAX CREDITS

If you are looking at Tax Credits and reviewing or planning your finances, please feel free to contact us. We can discuss your specific circumstances to help you plan tax efficiently.

Working Tax Credit

Rates	2018-19	2019-20	2020-21	2021-22	2022-23
Basic element	£1,960	£1,960	£1,995 plus £1,000 COVID element	£2,005 plus £500 COVID element	£2.070
Couple and lone parent element	£2,010	£2,010	£2,045	£2,060	£2,125
30 hour element	£810	£810	£825	£830	£860
Disabled worker element	£3,090	£3,165	£3,220	£3,240	£3,345
Severe disability element	£1,330	£1,365	£1,390	£1,400	£1,445

Childcare Element of Tax Credit

Rates	2019-20	2020-21	2021-22	2022-23
Maximum eligible cost for one child	£175 per week	£175 per week	£175 per week	£175 per week
Maximum eligible cost for two or more children	£300 per week	£300 per week	£300 per week	£300 per week
Percentage of eligible costs covered	70%	70%	70%	70%

Child Tax Credits Rates

Rates	2018-19	2019-20	2020-21	2021-22	2022-23
Child Tax Credit Family	£545	£545	£545	£545	£545
Child element	£2,780	£2,780	£2,830	£2,845	£2,935
Disabled child element	£3,275	£3,355	£3,415	£3,435	£3,545
Severely disabled child element	£4,600	£4,715	£4,800	£4,825	£1,430

Tax Credits Income Thresholds

Rates	2018-19	2019-20	2020-21	2021-22	2022-23
First income threshold	£6,420	£6,420	£6,530	£6,565	£6,770
First withdrawal rate (per cent)	41%	41%	41%	41%	41%
First threshold for those entitled to Child Tax Credit only	£16,105	£16,105	£16,385	£16,385	£17,005
Income rise disregard	£2,500	£2,500	£2,500	£2,500	£2,500
Income fall disregard	£2,500	£2,500	£2,500	£2,500	£2,500

Child Benefits Rates (Weekly)

Rates	2018-19	2019-20	2020-21	2021-22	2022-23
Eldest Only Child	£20.70	£20.70	£21.05	£21.15	£21.80
Other Children	£13.70	£13.70	£13.95	£14.00	£14.45

Guardian’s Allowance Rates (Weekly)

Rates	2018-19	2019-20	2020-21	2021-22	2022-23
Guardian’s Allowance	£17.20	£17.60	£17.90	£18.00	£18.55

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