Minimum family tax credit threshold rises for 2017-18 tax year

The income threshold for the minimum family tax credit (MFTC), which guarantees eligible low-income working families a minimum level of after-tax income, rises from $23,764 to $23,816 on 1 April 2017.

The new threshold was approved by the Income Tax (Minimum Family Tax Credit) Order 2016 on 21 November 2016. The new regulation also revokes the Income Tax (Minimum Family Tax Credit) Order 2014 as it is now spent, and amends the Income Tax (Minimum Family Tax Credit) Order 2015 to limit its application to the 2016–17 tax year.

The MFTC provides a top-up to after-tax income to help eligible working families moving off a benefit into paid employment.

The increase applies for the 2017–18 and later tax years.

Income Tax (Minimum Family Tax Credit) Order 2016 (LI 2016/282)