working tax credits

jacklink

if i am the main earner and working tax credits are paid to me then csa cant take a cut ?

or is it always when tax credits are applyed for they are automatically joint claim whether one partner is working or not

Soubrette

jacklink wrote: »

if i am the main earner and working tax credits are paid to me then csa cant take a cut ?

or is it always when tax credits are applyed for they are automatically joint claim whether one partner is working or not

My lovely husband is Canadian and was on a marriage visa which enabled him to work but have no recourse to the public purse - that means he was not entitled to any benefits whatsoever including working tax credit/job seekers allowance etc etc. He was able to work under that visa and indeed did, thus paying tax and NI.

Now to the actual point of my post my application for working tax credit had to be made as a joint application and my award was reduced because I had a working partner (and rightly so imo).

I suspect that you would be in the same situation as couples have to make joint applications but you could always ring and check with HMRC directly.

Sou

kelloggs36

You always make a joint application as it is calculated on your household income, so the CSA will either count all of it as the NRP income if he is the higher earner, or half if you earn the same or none if he is the lower earner. Child tax credits however are always deemed to be the NRP's.

tattycath

So Child Tax credits are treated as the NRPs? is that right-part of household income as a whole? even though we get them because I have dependants living with us?

shell_542

tattycath wrote: »

So Child Tax credits are treated as the NRPs? is that right-part of household income as a whole? even though we get them because I have dependants living with us?

YUP. Great aint it?

ALL child tax credits received in the household are treated as the NRP's income for CSA purposes. ALL working tax credits are used if the NRP earns more than the NRP's Partner, HALF if they earn the same and NONE if the NRPP earns more than the NRP.

So when an NRP and NRPP with young children, try to both get to work while affording childcare and get some help from the government in the form of the Childcare Element of Working Tax Credits, the CSA take some of that away if the NRPP earns less than the NRP.

DX2

tattycath wrote: »

So Child Tax credits are treated as the NRPs? is that right-part of household income as a whole? even though we get them because I have dependants living with us?

Yes, but your dependants are now his dependants surely? He will get a reduction in child support because of your dependants. It works both ways does it not?

shell_542

DX2 wrote: »

Yes, but your dependants are now his dependants surely? He will get a reduction in child support because of your dependants. It works both ways does it not?

Personally I don't think it makes sense at all. If they considered 50% of the tax credits as part of the NRP's income and 50% as the NRPP's that makes more sense (to me).

DX2

shell_542 wrote: »

Personally I don't think it makes sense at all. If they considered 50% of the tax credits as part of the NRP's income and 50% as the NRPP's that makes more sense (to me).

Personally I don't understand, this is the NRP money and this is NRPP's money As a family I would expect all the money to go in the pot as household income and all bills etc to be paid that way. Maybe I'm just old fashioned like that.

shell_542

DX2 wrote: »

Personally I don't understand, this is the NRP money and this is NRPP's money As a family I would expect all the money to go in the pot as household income and all bills etc to be paid that way. Maybe I'm just old fashioned like that.

So in that case, you would consider the NRPP's income to be included in the CSA assessment surely? If all money "in the pot" is fair game.

DX2

shell_542 wrote: »

So in that case, you would consider the NRPP's income should also be included in the CSA assessment surely? If all money "in the pot" is fair game?

Yes but as I said I'm old fashioned like that

shell_542

That's where we can agree to disagree then.