I owe tax credits 30K !

Pepzofio

subsoniccoyote wrote: »

You may not have received any help towards the childcare but you would still have received a bit extra in your tax credits as the income threshold is higher in a joint claim.

Sorry, I don't think this is correct. There is a 'couple' element to WTC, but it is the same as the 'lone parent' element, which presumably OP would be entitled to if she was claiming childcare.

Income thresholds are the same regardless of single or joint claims, although they vary according to whether you are claiming WTC or not.

alwaysonthego_2

Pepzofio wrote: »

Sorry, I don't think this is correct. There is a 'couple' element to WTC, but it is the same as the 'lone parent' element, which presumably OP would be entitled to if she was claiming childcare.

Income thresholds are the same regardless of single or joint claims, although they vary according to whether you are claiming WTC or not.

Subs is correct the income threshold for WTC is higher for couple claims than single claims.

To claim the child care element both of the couple need to be working 16 hours unless one of them are disabled.

MRSTITTLEMOUSE

I can't offer any advice and I don't have any children now so don't know anything about tax credits (just seem to pay lots of tax).
I just want to say that what I've read about tax credits on here they seem to be the biggest balls up ever.
They must waste as much money as they give out in them on admin and recovering what they should'nt have paid out.
Why do they continue with this system it's a joke.

Pepzofio

alwaysonthego wrote: »

Subs is correct the income threshold for WTC is higher for couple claims than single claims.

To claim the child care element both of the couple need to be working 16 hours unless one of them are disabled.

What are the two thresholds then? I've never heard of this before.

alwaysonthego_2

Pepzofio wrote: »

What are the two thresholds then? I've never heard of this before.

I am not sure of the exact figures but single parents is about £14000 and couples just under £18000. I have done plenty of quick benefits checks and this is how I know.

Pepzofio

alwaysonthego wrote: »

I am not sure of the exact figures but single parents is about £14000 and couples just under £18000. I have done plenty of quick benefits checks and this is how I know.

Well I'm sorry, but I have done advanced Tax Credit training and regularly do manual Tax Credit calculations and this is simply incorrect.

As I said, WTC contains a 'couple' element, so in theory a couple claiming WTC would have a higher award starting point than a childless single claimant, but there is also a 'lone parent' element to WTC which is the same amount as the 'couple' element. So in OPs case, her total WTC award would have remained the same (minus the childcare costs).

The first income thresholds are:

£6,420 for those claiming WTC (alone or with CTC)
£16,040 for those claiming CTC only

39% of income above the applicable threshold is deducted from the total WTC award and the CTC award (excluding the family element).

The second income threshold is £50,000. (This is the 'second threshold applied to the household income', not the 'threshold applied to the second income'.) 6.67% of income above this threshold is deducted from the family element of CTC.

These are taken from the CPAG Welfare Benefits & Tax Credits Handbook and verified on hmrc.gov.uk. The figures you quote are not thresholds or elements from the Tax Credits system.

alwaysonthego_2

Pepzofio wrote: »

Well I'm sorry, but I have done advanced Tax Credit training and regularly do manual Tax Credit calculations and this is simply incorrect.

As I said, WTC contains a 'couple' element, so in theory a couple claiming WTC would have a higher award starting point than a childless single claimant, but there is also a 'lone parent' element to WTC which is the same amount as the 'couple' element. So in OPs case, her total WTC award would have remained the same (minus the childcare costs).

The first income thresholds are:

£6,420 for those claiming WTC (alone or with CTC)
£16,040 for those claiming CTC only

39% of income above the applicable threshold is deducted from the total WTC award and the CTC award (excluding the family element).

The second income threshold is £50,000. (This is the 'second threshold applied to the household income', not the 'threshold applied to the second income'.) 6.67% of income above this threshold is deducted from the family element of CTC.

These are taken from the CPAG Welfare Benefits & Tax Credits Handbook and verified on hmrc.gov.uk. The figures you quote are not thresholds or elements from the Tax Credits system.

What I am talking about thresholds is the maximum a couple/single person can earn before they are not entitled to claim WTC, I was not talking about CTC. Asingle person can earn up to about £14000 ish before they are not entitled to WTC, a couple just under £18000. I suspect this is what Subs was meaning.

Pepzofio

alwaysonthego wrote: »

What I am talking about thresholds is the maximum a couple/single person can earn before they are not entitled to claim WTC, I was not talking about CTC. Asingle person can earn up to about £14000 ish before they are not entitled to WTC, a couple just under £18000. I suspect this is what Subs was meaning.

Only in the case of childless couples, which was the point I was disputing.

Subs stated "You may not have received any help towards the childcare but you would still have received a bit extra in your tax credits" - this is clearly not the case as prior to CoC OP would have been receiving the lone parent element of WTC.

alwaysonthego_2

Pepzofio wrote: »

Only in the case of childless couples, which was the point I was disputing.

Subs stated "You may not have received any help towards the childcare but you would still have received a bit extra in your tax credits" - this is clearly not the case as prior to CoC OP would have been receiving the lone parent element of WTC.

If you check for yourself the single person (figures are £16000 income level I was a bit out)any thing over £16000 does not qualify for WTC whilst a couple still recieves a small amount at an income level of £18000. The childless single person/couples threshold is even lower.

pitkin2020

bunny999 wrote: »

yes disgusting isn't it

just another example of someone who was obviously turned down for tax credits.

As mentioned to the OP get yourself down CAB and go through it with them you wont be judged like you are on this forum and they will advise you the best way forward.
YOu should also be able to make a claim as joint applicant for tax credits this time, which they may just award you but i doubt you will receieve as they will likely just take it back to repay the overpayment which will help