Can anybody help us? Tax Credits Question.

Zara33

itsnotfair wrote: »

I will be shot down in flames but the benefit system favours people with children. The theory is the child must never be deprived which is true but you can see why many use it as an easy passport to benefits and no need to work.

May be an idea to have some water/sand on standby
I hope you don't get burnt too much xoxoxo

itsnotfair_2

Zara33 wrote: »

May be an idea to have some water/sand on standby
I hope you don't get burnt too much xoxoxo

Sand and water at the ready.

whiteswan

I think the calculation must be wrong...........

LizzieS_2

whiteswan wrote: »

Had a look at the entitled to site (thanks for the suggestion)

And as she currently stands she would be entitled to a little towards living costs - something is better than nothing.

There was no option to forward date a claim to see what she may be entitled to after January so I put that the baby had been born last January and it seemed to come up with a figure of £4500 in benefits for the next 6 months (assuming baby born Jan 2009) - which equates to approx £9000 per annum in benefits as well as her wage - is this correct?

Is this actually the benefits sytem ENCOURAGING people to work as it seems rather a huge amount ???????

Also where does she start the claims???????

Dave

I did a very rough calculation and got 8K per year.

£545 of that is an allowance applicable to just the first 12 months after birth.

If your sister returns to work on the 30 hours, as a lone parent she would need childcare.

She can claim 80% of childcare costs (registered carer who is not family), but will have to pay 20% herself (thats some of the 8K gone).

She can claim council tax benefit and possibly housing benefit.

On the downside she may not have been in her current job long enough to qualify for maternity benefits/right to return to work, although she may still qualify for maternity allowance from DWP.

The tax credits are payable during periods of receiving smp or maternity allowance only. Her income would also be less as she is entitled to claim a reduction for her maternity pay amounting to £100pw for TC purposes.

If she doesn't return to work she will still get some tax credits, just not as much.

Yes the system is aimed at encouraging people in your sisters position to work, but in some cases it fails to make them better off. Also the figures look good until you start finding out the true costs of having a child.............

whiteswan

She has family members who are willing to do the childcare so she would obviously save money there.

I am very surprised at the amounts - but pleasantly surprised.

I know the costs of raising children - like you say it seems a lot but it soon goes.

Thankyou for all your help.

Dave