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: 23 Mar 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%

If you have further questions and would like to contact our advice team please use our advice contact form below or call us.

Advice contact form


Have you heard about your right to request flexible working? Watch our film to find out more.

DonateReceive updates button

The information on the law contained on this site is provided free of charge and does not, and is not intended to, amount to legal advice to any person on a specific case or matter. If you are not a solicitor, you are advised to obtain specific legal advice about your case or matter and not to rely solely on this information. Law and guidance is changing regularly in this area.