Increased levels of Tax Credits from 6 April
There are to be a number of changes to the amounts of tax credits available to claimants from 6 April 2009 as well as the claiming thresholds. These changes follow an announcement by the Chancellor in the 2008 Pre-Budget report.
Tax credits were designed to help meet the Government’s objective of tackling the problem of child poverty and to make work a viable option for the low paid.
With effect from 6 April 2009 the following changes will be implemented:
· The child element of the Child Tax Credit increases by £75 above indexation to £2,235. This figure includes a £25 increase which was brought forward from April 2010 in the Chancellor’s Pre-Budget announcement.
· The disabled child element and severely disabled elements rises with inflation.
· The income threshold for the Child Tax Credit rises to £16,040 (from £15,575).
· Certain elements of the Working Tax Credits are increased in line with indexation whilst some other elements remain the same.