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Tax credits ‘up-rating’: regulations

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The Tax Credits Up-rating Regulations, SI 2011/1035, change from 6 April the various elements and thresholds for child tax credit and working tax credit. Several changes will result in tax credits being reduced for some claimants.

The withdrawal rates for claimants whose income exceeds an income threshold are increased, and the income ‘disregard’ for in-year increases is reduced from £25,000 to £10,000.

The childcare element of working tax credit is reduced and the ‘baby addition’ to the family element of child tax credit is no longer available.

The new figures, announced last December, are set out on the HMRC website.

Categories: News , Private client taxes