CTC and WTC question

MummyHol

I've got myself a bit confused about my joint CTC award.

Basically we receive CTC but are not elligable for WTC but a friend of mine says her partner was receiving WTC when his wages were much higher than ours. The tax credits award we received most recently shows the 'working tax elements' as the amount we are intitled to reduced by the full amount because of our income but doesn't give any information on how they work this out or what the criteria are.

Another couple i know have told me that they couldn't receive WTC because 1 of them is under 25- could this be what is stopping us getting it?

I can't seem to find anything about what WTC awards are based on

Any help appreciated

alwaysonthego_2

If you have children then you can qualify for WTC under the age of 25 as long as one of the couple is working over 16 hours a week.

Check out www.entitledto.com for a estimated amout that you maybe entitled to. You may have been overpaid previously and they are recovering their money or they do not have the correct hours etc. You can always request a breakdown of your award to be sent to you.

bigbill

Under £6,400 yearly and maximum WTC would be paid

Over £15,400 yearly and normally none paid

Remember WTC is based on last years incomes so some people can have higher earnings than you now but could have had a lot less last year.

Charts here but hard to follow if you dont know the system.

http://www.welfarerights.net/guides/charts.htm

[Deleted User]

The WTC limit is out of date on that.

The limit for couples and/or single people with children is £17,392.

bigbill

Don't think so

http://www.opsi.gov.uk/si/si2008/draft/ukdsi_9780110809168_en_1

AirlieBird

subsoniccoyote wrote: »

The WTC limit is out of date on that.

The limit for couples and/or single people with children is £17,392.

Something wrong with your Maths there mate.

6420+(1800+1770)/39%=£15,573.85

alwaysonthego_2

subsoniccoyote is a tax credit worker so I would assume she knows what she is talking about.

calleyw

AirlieBird wrote: »

Something wrong with your Maths there mate.

6420+(1800+1770)/39%=£15,573.85

Think you are the one that is wrong according to this link to a government website it clearly states for couples that the limit is £17400.

As has already been stated subsoniccoyote works for tax credits.

Amazing that google can do :rolleyes:

Yours

Calley

bigbill

There both right.

If people just qualify for CTC (In other words they don't work over 16 or 30+ hours) then the £15,575 is used to reduce the maximum CTC due once their incomes go over this amount.

If they work (Over 16 or 30+ hours) the cut of point for WTC would be about £17,400.

So the chart seems right but so is subsoniccoyoty.

[Deleted User]

£15,575 is the first income threshold for those who do not meet the qualifying criteria for WTC (dont work 16+ hrs p/w) so qualify for ONLY CTC.
When the income reaches this level the CTC award is reduced by 39p in the £1.

£6420 is the first income threshold for those who qualify for CTC AND WTC or WTC ONLY. When the income reaches this amount the award is reduced by 39p in the £1.

£17,392 is the level where the entitlement to WTC is reduced to £0.00 whether you qualify for CTC, WTC or both.

*Note these income levels are changed if there are disabled elements of WTC.

MummyHol

Just assuming these income figures are before tax and NI reductions.

OH was on £18000 last year (before tax) so i guess we don't qualify.

Thank you all for the info x