Working Families' Tax Credit (WFTC) and Disabled Person's Tax Credit (DPTC) will replace Family Credit and Disability Working Allowance in October 1999.

WFTC will provide in-work support for families with children, while DPTC will help low-paid people whose earning capacity is reduced by disability or long-term illness.

The tax credits will be more generous than the benefits they replace; so more people will be eligible.There will be four parts to WFTC:-- a basic tax credit of £52.30 payable to all who are entitled to WFTC;-- a 30-hour tax credit of £11.05 payable when either the applicant or his or her partner works 30 hours or more each week;-- a tax credit for each eligible child with different rates dependent on the child's age, ranging from £19.85 to £25.95 per child and;-- a childcare tax credit -- payable when there are eligible childcare costs incurred.As with Family Credit, calculations will be based on net weekly income.

WFTC a pplicants will be able to earn £90 before credit begins to be withdrawn (at a rate of 55p for every pound of income above £90).

On Family Credit there is currently a 70% taper on earnings above £79 per week.Another new tax credit is DPTC.

As with WFTC the same rates apply for couples and lone parents (that is, £90), however, single applicants with no children will only be able to earn £70 per week before the credit will start to be withdrawn.DPTC will contain five parts:-- basic tax credit of £54.30 for a single person with no children and £83.55 for a couple;-- 30 hour tax credit of £11.05, the same as for WFTC);-- disabled child's tax credit of £21.90 payable when a dependent child is in receipt of DLA or registered blind;-- tax credit for each eligible child, dependent on the child's age ranging from £19.85 to £25.95 per child;-- childcare tax credit.Childcare tax creditThe calculation of the tax credits includes an element to reflect the cost of eligible childcare.

In order to qualify, both parents must be working 16 hours per week or more, and the work must be for remuneration and not voluntary unpaid work.

The exception to this is where one parent is working 16 hours or more and other non-working parent is in receipt of a qualifying disability benefit.

They must be using eligible childcare.There will be a maximum amount of childcare tax credit payable.

This will be worth up to 70% of eligible childcare costs up to maximum limit of £100 per week for one child (or £70 per week after percentage applied) and £150 for two or more children (or £105 after percentage applied).Some childcare schemes do not require registration under section 71 of the Children's Act 1989 and these will be acceptable as eligible childcare schemesHow to apply for WFTC/DPTCApplication forms will be available from September 1999.

Successful applications will have an award start date of 5 October 1999.Couples can choose how the applicant is registered (working or non-working partner -- WFTC only).

If successful a claim will be payable from 5 October 1999.

For DPTC the applicant must be the working person who is disadvantaged in getting a job.Applications will be dealt with by the Tax Credit Office (TCO) based in Preston and Liverpool.A booklet, 'Working Families' Tax Credit and Disabled Person's Tax Credit', was sent to all Tax Enquiry Centres (TECs) last December.

The information contained in the booklet is based on the proposals in the Tax Credits Bill.

Some of the details may change before the proposals become law later this year.Copies of the booklet can be obtained from the Inland Revenue by telephoning 0845 764 6646.There is also a CD-ROM available by telephoning this number.

Additionally, a copy of the booklet is available via the Internet: http://www.open.gov.uk/jw/jw.htm; or: www.inlandrevenue.gov.uk