Nelson & Co - Tax Credits

The rates and thresholds of the tax credits are shown below.

Working Tax Credit (1) - £ per year

Rates and Thresholds	2010/11	2009/10
Basic element	£1,920	£1,890
Couple and lone parent element	£1,890	£1,860
30 hour element	£790	£775
Disabled worker element	£2,570	£2,530
Severe disability element	£1,095	£1,075
50+ Return to work payment (16-29 hours)	£1,320	£1,300
50+ Return to work payment (30+ hours)	£1,965	£1,935

(1) Aged over 16 working 16 or more hours per week if responsible for a child or disabled, or aged over 25 working 30 hours per week.

Childcare element of the Working Tax Credit

Rates and Thresholds	2010/11	2009/10
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%

Child Tax Credit (2) - £ per year

Rates and Thresholds	2010/11	2009/10
Child Tax Credit Family element	£545	£545
Family element, baby addition	£545	£545
Child element	£2,300	£2,235
Disabled child element	£2,715	£2,670
Severely disabled child element	£1,095	£1,075

(2) One or more children under 16 or under 20 in defined further education. Paid direct to main carer.

Tax Credit Income Thresholds and Withdrawal Rates

Rates and Thresholds	2010/11	2009/10
First income threshold	£6,420	£6,420
First withdrawal rate	39%	39%
Second income threshold	£50,000	£50,000
Second withdrawal rate	6.67%	6.67%
First threshold for those entitled to Child Tax Credit only	£16,190	£16,040
Income disregard	£25,000	£25,000

Child Benefits / Guardian's Allowance Rates

£ per year	2010/11	2009/10
Eldest / only child	£20.30	£20.00
Other Children	£13.40	£13.20
Guardian's Allowance	£14.30	£14.10