Personal Tax

Tax credit rates and thresholds

Produced by Tolley
  • 22 Mar 2022 09:44

The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Tax credit rates and thresholds
  • Working tax credits
  • Child tax credits
  • Thresholds
  • Taper or withdrawal rate
  • Income disregard

Tax credit rates and thresholds

New claims for tax credits are no longer possible as they have been replaced by the universal credit (see the Universal credit guidance note). However, existing claimants will continue to receive tax credits until they are migrated to the universal credit system. The 2021/22 rates of tax credits and relevant thresholds for computing an award are shown below.

Working tax credits

£ per annum£ per day
Basic element2,0055.49
Second adult element2,0605.64
Disabled worker element3,2408.88
Severe disability element1,4003.84
Lone parent element2,0605.64
30-hour element8302.27
£ per week
Childcare element *One child17525.00
Two or more children30042.86

* The amount that can be claimed is 70% of the childcare costs, up to a maximum of the costs shown, so the maximum award is 70% of these amounts.

In response to the coronavirus (COVID-19) pandemic, the Government announced in the March 2021 Budget that it will be

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