Working Tax Credit (WTC) and Child Tax Credit (CTC) were introduced for the first time in 2003/04. Provisional claims for that year were based on 2001/02 income, and shortly have to be revised to take into account actual 2003/04 income. The rates of WTC and CTC for 2004/05 have been in many cases increased in line with inflation, but some elements have not (e.g. the amount of childcare cost that the Revenue will cover). The full table of rates is too large and complex for this brief summary.

Until now, WTC (like its predecessor Working Families Tax Credit) has usually been paid by employers through the payroll. To reduce burdens on business, the Revenue are consulting on the possibility that WTC will be paid directly to the claimant by the authorities.