7.The award of Working Families’ Tax Credit (WFTC) will be based on circumstances at the date of the claim and will run for 26 weeks. The main qualifications for entitlement will be that claimants must be working at least 16 hours a week and be responsible for children. It is available to both lone parents and those with a partner.
8.The WFTC will consist of:
9.The childcare tax credit is new (replacing the childcare disregard currently within Family Credit). It will provide 70% of eligible childcare costs up to a maximum spent of £100 a week for one child, and £150 for two or more children.
10.The total amount of the tax credit award will be withdrawn at the rate of 55 pence for each additional £1 of net earnings over a threshhold - income net of income tax and NIC, of £90 per week.
Summary and Background The new tax credits Working Families’ Tax Credit