How are Tax credits calculated?

CIS

So I work out

Couple, 1 person working, 3 children, 1 on severe disability elemnt, 1 on normal disability element.

£14980 in elements

Income adjusted to ((£15692 - £5220)*0.37)=£3875

£14980 - £3875 = £11105= £854 per 4 weeks

I get near enough what they do, so it seems to be okay

D&DD

Thanks so much!! Panic over You're a star CIS I just couldn't wrap my brain round it :rotfl:

Spendless

mercman wrote:

What is this childcare help that people keep mentioning?

We have rang and asked the tc people but just come off the phone more & more confused!

We currently get approx £90 per month thaqt will decrease to approx £45 after her 1st birthday

What and how can we claim for what we are entitled to?


Cheers

Merc

Have you tried playing about with figures on www.entitleto.co.uk
Put figures in with and without childcare costs if they are different, you know you are receiving help with childcare bills.

Budget_mum

CIS wrote: »

The figure is quite easy for a basic calc:

1)Calculate whether your eligible

2)Total up the value of the elements that you are entitled to

3)Take your total income and deduct £5220 (if you are entitled to WTC) or £14155 if only entitled to CTC.

4)Take the resulting figure from step 3 and multiply by .37. This gives you an adjusted income figure.

5)Take the amount from step 2 and deduct the amount from step 4 from it, This gives the annual payable amount with a couple of exceptions.
a)If you claim for children , the minimum award is £547.50 p/a
b)if you claim for children and earn over £50K, the £547.50 is tapered by
6.67% for every £ you earn over £50K

(This calc ignores some roundings that might alter the figure by a £1 or £2. If the amount is for a part yr, remember that all of the amounts need to be pro-rated)

Further Guidance here
http://www.hmrc.gov.uk/manuals/tctmanual/TCTM07000.htm
Rates are here
http://www.hmrc.gov.uk/rates/taxcredits.htm

Great post, very helpful. Can you confirm the current firgures as this post is from 2006 ?

sally0101

I dont even think the Tax Credits staff know the answer to that one! lol. If they did, they would get it right first time! :rotfl: