Tax credits and benefits
There were some small announcements in Budget 2017 concerning tax credits and other benefits.
- The current income taper rate for Universal Credits is 65%, which means that when a claimant earns above the work allowance their benefit is gradually withdrawn. For every £1 over the limit they have historically got to keep 35p of their award. From April 2017, the taper rate will reduce to 63% thus claimants will be able to retain more of their award.
- Free school transport for all pupils (aged 11 to 16) who receive free school meals or whose parents claim maximum Working Tax Credit (to the nearest selective school).
- From September 2017, free childcare will increase from 15 to 30 hours per week for working families with three and four year olds in England (limits are applied).
If you have any queries regarding any of the above please contact one of our Tax Specialists on 01228 711888.