Tax Credits

	2004/05 £	2003/04 £
Working tax credit (WTC) Basic element
- max.	1,570	1,525
Childcare element 70% of eligible costs to a max. of £135 per week (£200 if two or more children)
Child tax credit (CTC) Child element
per child - max.	1,625	1,445
Family element	545	545
Baby addition	545	545

Reductions in maximum rates 37% of income above £5,060*p.a.

*If only CTC is claimed, the threshold is £13,480 p.a. (£13,230). 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.