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Business Advice
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Page 23 of 30
Budget 2005
 Tax Credits
Working Tax Credit (WTC)
Applies from 6 April 2003
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2005/06 |
2004/05 |
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£
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£
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| Annual |
| Basic element |
1,620
|
1,570
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| Second adult or lone parent addition |
1,595
|
1,545
|
| 30 hour element |
660
|
640
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| Disability element |
2,165
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2,100
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| Severe disability element |
920
|
890
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| Age 50+ element working 16-29 hours per week* |
1,110
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1,075
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| Age 50+ element working 30+ hours per week* |
1,660
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1,610
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| Weekly |
| Childcare element |
| maximum eligible cost for 1 child † |
175
|
135
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| maximum eligible cost for 2 or more children † |
300
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200
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Claimants can be eligible for each element
Claim reduced by 37p for every £1 of annual income over £5,220 (£5,060 2004/05)
* Mutually exclusive
† Reduced to 70% of eligible cost
Child Tax Credit (CTC)
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2005/06 |
2004/05
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£
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£
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| Annual |
| Family element (double in year of birth)* |
545
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545
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| Child element (per child)† |
| - disabled child |
3,975
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3,840
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| - severely disabled child |
4,895
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4,730
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| - any other child |
1,690
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1,625
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* Claim reduced by £1 for every £15 of annual income over £50,000
† Where only CTC available claim reduced by 37p for every £1 of annual income over £13,910 ( £13,480 2004/2005); £5,220 (£5,060 2004/05) where WTC also available
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Business Advice