Tax credits may be cut under Tories - The Times

space_rider

I would be surprised if you could get a mortgage without actually working.

baileysbattlebus

space_rider wrote: »

I would be surprised if you could get a mortgage without actually working.

Next year - we will both be unemployed (or more correctly economically inactive) - early retirement - mid 50's and I would imagine although we won't be working if wanted one we could get a mortgage. The Abbey have an upper age limit for completion of the mortgage term of 75 - so I guess we could get a 20 year mortgage if we wanted.

Income doesn't necessarily mean you have to work to get it.

ALIBOBSY

I know people who did get mortgages in the "boom" with just benefit income. However one in particular who got a big mortgage, had on top of his incapacity benefit a large ill health pension from work (he had a well paid,stressful job for years and had a massive heart attack at work).
I suspect (hope) that banks would be more careful lending now. I remember in 99 when we got our mortgage they definately took copies of our child benefit award notice, can't remember about tax credits (may not have exisited then).

We found after I had baby 3 and finished my part time work,that the tax credits went up by more than half of my annual salary. With savings in being able to shop and budget (more time available), cook all from scratch etc, plus savings in travel costs it is actually more cost effective for me to stop at home.
Great for our family, but the reality is we could probably manage on OH's salary and the child benefit alone.
Surely to encourage working it would be better to scrap tax credits and increase the tax allowances, even bring back the 10% rate for low earners. Wouldn't it make more of a difference to a family if there is more in the pay packet every week/month. The admin costs of taking cash from my OH's wage each month to then pay into our saving account each week is surely a waste.
The fact that a top rate tax payer can still get some tax credits is crazy.

The CTC makes our life easier, but we could manage if it went and would be just as happy with more take home pay each month instead of a weekly payment, even if this ended up less income overall.

ali x

lostinrates

baileysbattlebus wrote: »

Income doesn't necessarily mean you have to work to get it.

Exactly. Besides benefits there are various sources of income other than via current work income. For the banks its a question of business and repayment, not work ethic, and is, IMO, only right that that is so. (at least in cases other than state benefits.)

ALIBOBSY

nearlynew wrote: »

I don't like all these new taxes and the way they are administered.

What was wrong with the "good old days" when you had a different tax code depending on whetehr you were married, single, had kids etc.

This is the sort of thing I am talking about surely a better system would be if minimum paid jobs paid no or very little tax to encourage people to work rather than sit on benefits.
I would also get rid of council tax and stick a local tax on your income tax. The admin savings alone would be massive and the tax would be in proportion to income so pleasing the OAPs so surely a vote winner.

ali x

carolt

Totally agree with you re the low/no tax for low earners (what made them get rid of the 10p rate?), but not about the local income tax - council tax gives local accountability and means some areas can choose to pay more or save money where they will.

Harry_Powell

Council tax based on income? Does it not seem a little unfair that affluent single people who produce less waste and use less services should shoulder a higher council tax than families who have lots of kids, produce more waste and use more services?

carolt

I find it shocking that people would take out mortgages based on tax credits, for the simple reason that, as this thread points out, a change of govt will almost certainly get rid of them.

What to pay the mortgage with then?

RabbitMad

We are currently being overpaid tax credits at the rate of £700 pcm due to an error HMRC made. I've written to HMRC twice pointing out their error and they still haven't corrected it.

I intend to write again after every incorrect over payment but as it is their mistake we don't have to pay it back.

patrich

i ask questions that i know thw answer to and every time i get told the wrong answer. it beggars belief who are we supposed to rely on for correct answers to our viable questions? If we get it wrong we can get fined & made to repay, it's no wonder many don't claim, they are afraid to