What is the working families tax credit?
Working families’ tax credit was introduced in October 1999 and is given to families with dependent children on low-to-middle incomes. To qualify, one parent has to work 16 or more hours a week and each household must have less than 8,000 in savings. From April 2001, the credit was worth 54 a week plus 26 to 26.75 a week for each child. There is an additional payment of 11.45, when one adult works 30 hours a week or more and couples with disabled children get additional allowances. Couples can also get help with childcare – up to 70% of eligible costs up to maximum costs of 135 for one child and 200 for two or more children. The WFTC award is calculated by adding these components – the credits – together. If the family income (after tax and National Insurance contributions) is above 92.90 per week, this is reduced by 55p for each 1 above 92.90. What is the children’s tax credit? The children’s tax credit started in April 2001. It replaced a universal benefit called the married couples’
