Tax Credits

	2007/08 £	2006/07 £
Working Tax Credit (WTC) Basic element - max.	1,730	1,665
Childcare element 80% of eligible costs up to £175 per week (£300 if two or more children).
Child Tax Credit (CTC) Child element
per child - max.	1,845	1,765
Family element	545	545
Baby addition	545	545

Reductions in maximum rates
37% of income above £5,220* p.a.

*If only CTC is claimed, the threshold is £14,495 p.a. (£14,155). The family element of CTC is not reduced unless income is more than £50,000 p.a. when it is reduced by £1 for every £15 of additional income.