MSE News: Families must prepare for tax credits cut

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Comments

  • ToasterScheme
    ToasterScheme Posts: 116 Forumite
    First Post First Anniversary
    damonflash wrote: »
    Could someone help, the article states:

    Maximum income
    To qualify for working tax credits, you must also earn below the income caps, which will be broadly similar from 6 April.
    They are as follows:
    Working tax credit eligibility Maximum household income
    __________2011/12 2012/131
    No of kids
    ___2______ £58,200 £58,900

    But on the letter from HMRC it states the income limit for WTC for joint households is £18000?

    I too think there must be a mistake.
    We are both working, 1 full time, 1 7.5hours, income above 32200, but below 58000, two kids.
    We currently get the 545 CTC, and now expect to lose it.
    I don't remember ever getting WTC - but the article suggests we should get this next year. But I'm not getting my hopes up - other links out from this thread still calculate a big fat zero.
  • Dunroamin
    Dunroamin Posts: 16,908 Forumite
    Si1 wrote: »
    If my partner does paid child care for some of her friends, all above board and declared etc, do those hours count towards our required 24 hours combined work hours to be able to claim working tax credits with a family?

    Is she a registered childminder or similar?
  • Charityworker
    Charityworker Posts: 989 Forumite
    Marisco wrote: »
    Charityworker wrote: »
    We are a family of 4 on a COMBINED income of £5058 per year.


    Have you left a nought out somewhere?? 5k a year is only 97 quid a week!!!

    Yes thats right. £97.28 a week, I'm one of those rare people who work for the minimum wage. Yes we do get Child Tax Credit and Child Benefit on top. But even with that we still are on an imcome of £12,844 a year. Nowhere near the £32,000 that other people can't live on.
  • Sixer
    Sixer Posts: 1,087 Forumite
    ToasterScheme wrote: »
    I too think there must be a mistake.
    We are both working, 1 full time, 1 7.5hours, income above 32200, but below 58000, two kids.
    We currently get the 545 CTC, and now expect to lose it.
    I don't remember ever getting WTC - but the article suggests we should get this next year. But I'm not getting my hopes up - other links out from this thread still calculate a big fat zero.

    That maximum refers to people with two children PLUS the children have disabilities PLUS they claim maximum childcare.

    If your children aren't disabled and you don't pay for any childcare, then your tax credits will get completely withdrawn once you get to the £32,200.
  • Si1
    Si1 Posts: 17 Forumite
    First Anniversary Combo Breaker
    Dunroamin wrote: »
    Is she a registered childminder or similar?
    well she will be soon
  • spartacusthe1st
    spartacusthe1st Posts: 441 Forumite
    Hi,can anyone PLEASE help me work out our entitlement for this year??
    Income 2011-2012 is 13000. And income for 2012-2013 wil be around 21000.

    Two kids ages 2 and 5.no disabilities etc.

    Any help much appreciated just want an idea really so I won't be too shocked :0)
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  • jellyhead
    jellyhead Posts: 21,555 Forumite
    Combo Breaker First Post
    damonflash wrote: »
    They have stopped our CTC as income over £32000, mainly due to their silly valuations on company car elements... I was just looking to see if we were eligible for anything as we really haven't budgeted for this change. :eek:

    I know, the company car thing is daft - as if you'd spend thousands per year on a car if the company didn't provide one :eek: My husband cycled to work before they gave him a car :rotfl:

    I'm not claiming poverty - the tax credits pay for swimming lessons rather than bread and milk - but the idea that people earning less than 30k would spend more than 5k on a car is mad, they'd have an old banger rather than a brand new car, surely.
    52% tight
  • jellyhead
    jellyhead Posts: 21,555 Forumite
    Combo Breaker First Post
    Charityworker wrote: »
    Marisco wrote: »

    Yes thats right. £97.28 a week, I'm one of those rare people who work for the minimum wage. Yes we do get Child Tax Credit and Child Benefit on top. But even with that we still are on an imcome of £12,844 a year. Nowhere near the £32,000 that other people can't live on.

    What about housing benefit and council tax benefit?
    52% tight
  • Charityworker
    Charityworker Posts: 989 Forumite
    jellyhead wrote: »
    Charityworker wrote: »

    What about housing benefit and council tax benefit?

    Council tax benefit yes but housing benefit no as I have a mortgage which is a struggle to keep up with now. Oh well, I guess it will be the bailiffs for us. Thanks government.
  • zagfles
    zagfles Posts: 20,317 Forumite
    First Anniversary Name Dropper First Post Chutzpah Haggler
    Fliss_M wrote: »
    I give up trying to work it out. I knew we'd get little for 2. were ttc number 2 now but we would like 3. Its the help towards number 3 I wanted to know, if we could afford it before planning it (full time nursery 1.4k at least) buut when I called the said the 32k for 2 kids was the top thresh hold, that there were no more for 3 and 4. If they dont know I havent got a prayer! lol
    You're not the first to have reported this. It is total and utter bulls**t, the limits go up for each child, the first part of the article gives the thresholds. It's about £38800 with 3 kids. The HMRC website doesn't even tell you this, it gives the limits for 1 or 2 children but not more.

    If I were a tin-foil hat wearing conspiracy theorist I'd start thinking this wasn't just sheer incompetance!
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