Tax Credits - Is this right?

Ex-Spendaholic

Just looking for some advice.

My OH is likely to be made redundant in the next few months. If so he will get a redundancy package of circa £60K (so that is good). :j We have 3 kids and I work 22 hours per week earning £18,500. I just looked on entitledto.com to see if we could claim any sort of tax credit (expecting the answer to be no).

However, having using the details from my payslip the website has told me we will be entitled to £7391.01 per year (£141.75 per week). I'm really surprised at this. As a result of the redundancy payment, we will be mortgage free (which is also good) :dance: There doesn't seem to be anywhere on the website or the IR website to declare savings (which we will have after the redundancy payment)

2 of the kids are at school and the 3rd is looked after by grandparents so there are no childcare costs.

Does this figure seem right? With the whole debacle of errors and overpayments etc I would almost be frightened to claim in case we end up in this situation. I appreciate that we are in a really good position in that we will come out the other end of job loss both mortgage free and with savings so I'm surprised that we will get help.

Any advice would be greatly appreciated.

£7,391.01£141.75 weekly

sassygirl_2

That seems an awful lots if your income is £18500 per year. my Oh is on £17900 and we have 3 children, one of which is only 5 months old, we have no childcare costs and we get £3066.37 per year including the baby bonus.

Valli

Actually it could well be right - because it's dependant on the age of the kids. Tax credits are to do with earned income and hours worked so the redundancy package won't count. There is Child Tax Credit and Working Families Tax credits - these were devised to replace the married man's tax allowance and are not actual benefits although many perceive them as benefits. It was merely a change in the tax system!
As long as you are up front with what you get should be fine. Just check, on any notices you receive, that all details (hours worked/salary received etc) are accurate. Inform them of changes ASAP and keep a record of dates when you do phone just in case.
It depends when in the year you claim, too. So when you claim it might well drop - but when my salary goes up so do my credits - because they are tax based - not intended as a wage top-up IYSWIM

loolooloo_2

Hi.

Not sure if that sounds correct, sounds a bit much to be honest. In reply to sassygirl though. I have 3 children. 1 of who is 8 months, a 5 year old and a 15 year old and my husband has dropped hours, all oevrtime etc. His wages have dropped right down to £17,100. We are now entitled to £6535 and £150 WTC.

TotallyBroke

I'm a single parent with one child (over 1) and earn £20,500pa I get approx £2635pa CTC and £4000pa WTC but that does include the childcare element. So I'm getting £120 per week.
So it could be right.

alwaysonthego_2

Check www.entitledto.com for a guide on what you should be getting.

NASA_2

alwaysonthego wrote: »

Check www.entitledto.com for a guide on what you should be getting.

She did according to the opening post:p

alwaysonthego_2

ESA wrote: »

She did according to the opening post:p

lol it will teach me to scan read posts, well the CAB would be her next step!

[Deleted User]

Those figures look wrong.

I have completed a quick manual calculation and it works out to be around £86 p/w for 2009/10 tax year.

I do need to make you aware that you will have an overpayment for 2008/09.

Your household income is going to increase by more than the £25,000 income disregard so this will cause the overpayment.

Your payments in 2009/10 will decrease by around 25% to recover the overpayment automatically. This would mean your payments will be about £65 p/w.

Ex-Spendaholic

Thanks everyone.

Subsonicoyote, we haven't had tax credits before so shouldn't have an overpayment as such.

What do you mean by an income increase? I'm a bit confused on that as our income will go down following the redundancy.

BTW, kids are 10, 6 and 16 months should that make any difference.

sassygirl_2

loolooloo wrote: »

Hi.

Not sure if that sounds correct, sounds a bit much to be honest. In reply to sassygirl though. I have 3 children. 1 of who is 8 months, a 5 year old and a 15 year old and my husband has dropped hours, all oevrtime etc. His wages have dropped right down to £17,100. We are now entitled to £6535 and £150 WTC.

I am sure they are underpaying me. My children are 5 months, 5 yrs and 10 yrs. I get no WTC as they said hubbies wages were too much. I cant understand the system at all to be honest and im just grateful for anything i get. Maybe it may be because he works 42 hours??