credits

Tax credits entitlement tables: working at least 16 hours and paying childcare

The amounts shown are the total you could get for the whole of this tax year (6 April 2016 to 5 April 2017). The annual income is before tax and National Insurance are taken off. It’s your joint income if you’re in a couple.

Annual income (£) £90 a week child care costs Maximum child care (£175)
0 10,575 13,670
5,500 10,575 13,670
9,850 9,980 13,075
10,000 9,920 13,015
15,000 7,870 10,965
20,000 5,820 8,915
25,000 3,770 6,865
30,000 1,720 4,815
35,000 0 2,765
40,000 0 715
45,000 0 0

2.You have 2 children

The amounts shown are the total you could get for the whole of this tax year (6 April 2016 to 5 April 2017). The annual income is before tax and National Insurance are taken off. It’s your joint income if you’re in a couple.

Annual income (£) £150 a week child care costs Maximum child care (£300)
0 15,540 21,000
5,500 15,540 21,000
9,850 14,945 20,405
10,000 14,885 20,345
15,000 12,835 18,295
20,000 10,785 16,245
25,000 8,735 14,195
30,000 6,685 12,145
35,000 4,635 10,095
40,000 2,585 8,045
45,000 535 5,995
50,000 0 3,945
55,000 0 1,895
60,000 0 0

3.You have 3 children

The amounts shown are the total you could get for the whole of this tax year (6 April 2016 to 5 April 2017). The annual income is before tax and National Insurance are taken off. It’s your joint income if you’re in a couple.

Annual income (£) £150 a week child care costs Maximum child care (£300)
0 18,325 23,785
5,500 18,325 23,785
9,850 17,725 23,185
10,000 17,665 23,125
15,000 15,615 21,075
20,000 13,565 19,025
25,000 11,515 16,975
30,000 9,465 14,925
35,000 7,415 12,875
40,000 5,365 10,825
45,000 3,315 8,775
50,000 1,265 6,725
55,000 0 4,675
60,000 0 2,625
65,000 0 575

4.Who should use these tables?

You can use these tables if you’re:

  • single and working at least 16 hours a week
  • a couple with both of you working at least 16 hours a week

You can also use these tables if you’re a couple, only one of you works at least 16 hours a week, and the other is:

  • getting certain benefits or credits for disability or illness - eg Disability Living Allowance, Attendance Allowance, Personal Independence Payment or a disability premium for Housing Benefit
  • in hospital or in prison
  • entitled to Carer’s Allowance - even if they don’t get any payments because they receive other benefits instead

Don’t use these tables if you’re a lone parent working between 16 and 29 hours a week and your total income is more than £5,250. You can check how much you might get by filling in an online calculator instead - it takes about

10 - 15 minutes to complete.

Tax credits calculator

5.How to use these tables

Find the table that applies to you - the headings will help you choose.

Find the annual income level in the first column that’s nearest to your own total income for the last tax year (joint income for couples). This includes income from work, some state benefits (such as contributions-based Jobseeker’s Allowance), and other income (such as interest on savings) over £300. A tax year runs from 6 April to 5 April. If your income this tax year is likely to be more than £2,500 lower, you might need to look at a different annual income level. See the next section for how to work out which figure to use.

Find the heading from the other columns that applies to you. The childcare costs provided are examples, so use the costs that are nearest to your average weekly costs.

Where the row and column meet that is the typical amount of tax credits award for those circumstances.

You should use the information in the tables as a guide only. For a better idea of how much you might be entitled to, you can use a more detailed online tax credits calculator. It should take about 10-15 minutes to fill in.

Tax credits: working out income

Tax credits calculator

6.If your income will drop in this tax year by more than £2,500

If your income is likely to drop this tax year by more than £2,500, you might need to look at a different annual income level. Follow the steps below.

Step 1. Take your lower income.

Step 2. Add £2,500 to it. This is because the Tax Credit Office ignores the first £2,500 of the income drop when working out your payments.

Step 3. Find the annual income level in the table that’s nearest to your answer.

6.1Example

Your income for the last tax year was £30,000. But you estimate that your income will drop to £18,000 for this tax year (6 April 2016 to 5 April 2017). You need to look at the annual income of £20,000 in the table. This is worked out like this:

£18,000 + £2,500 = £20,500. So the nearest income in the table is £20,000.

7.What you need to know about the income figures

It’s worth knowing about some things that apply to the income figures in the tables.

For the annual income figures of £0 and £5,250, the amount of tax credits shown only applies if either of the following apply:

  • you’re single and work at least 16 (but less than 30) hours a week
  • you’re a couple, one of you works at least 16 and - between you - you work under 30 hours a week

For the annual income figures of £9,850 and above, the amounts of tax credits shown only apply if you’re:

  • single and work at least 30 hours a week
  • a couple, one of you works at least 16 hours and - between you - you work at least 30 hours a week

If none of these working hours apply to you, you can check what you could get by using a more detailed online tax credits calculator.

Tax credits calculator

How to claim tax credits

Childcare and tax credits


Category: Taxes

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