Home Advice for Parents & CarersBenefits for carers of disabled adults Rates of tax credits, income thresholds and withdrawal rates

Rates of tax credits, income thresholds and withdrawal rates

Last updated: 29 Jun 2021

Note: The figures in this table for April 2020/21 include the increase of £1,040 in the Working Tax Credit basic element which was announced by the government in response to Covid-19 on 23 March 2020. The temporary increase will end on 5 April 2021 and will be replaced with a one-off extra payment of £500 for people who were eligible for Working Tax Credit on 2 March 2021. As this is a one-off payment it is not reflected in the below table for April 2021/22.

Rates of tax credits, income thresholds and withdrawal rates

April 2020/21April 2021/22
Tax Credits
Child Tax Credit family element£545* (only where there is a child born before 6 April 2017)£545* (only where there is a child born before 6 April 2017)
Child element£2,830£2,845
Disabled child element£3,415£3,435
Severely disabled child element£4,800£4,825
Working Tax Credit basic element£3,040£2,005
Couple/lone parent element£2,045£2,060
30 hour element£825£830
Disabled worker element£3,220£3,240
Severe disability element£1,390£1,400
Childcare element of Working Tax Credit: maximum eligible cost for one child£175 per week£175 per week
Maximum eligible childcare cost for two or more children£300 per week£300 per week
Percentage of eligible childcare costs covered70%70%
Tax credit income thresholds and withdrawal rates
Threshold for maximum Child Tax Credit where neither partner meets conditions for Working Tax Credit£16,385£16,480
Income threshold for families who meet conditions for both tax credits£6,530£6,565
Withdrawal rate (this is the percentage of your income ABOVE the threshold which is taken off your tax credit award)41%41%

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