done it

mitchaa

Your income at the moment = £927 earned + £2028 in benefits = £2955.
Childcare = £1473 leaving you with £1482pm

Your income come January = £927 earned + £1552 in benefits = £2479. (Benefits = £325pw in TC + £33.20 in CB x 52 /12 = £18626/12 = £1552)
Childcare = £650pm leaving you with £1829pm

So there is a difference straight away of you being £350pm better off due to reduced childcare costs.

This doesn't seem right to me from a TC point of view, i would double check you have your facts and figures right with TC as the last thing you want is a massive overpayment come April time.

It seems strange that you receive so much welfare benefits, the maximum you are entitled to is 80% of the childcare costs which in your case is 4/5 of £150pw which is £120pw. You are receiving £325 so (minus £120pw for the childcare) £205pw in CTC and WTC which seems a hell of a lot to me.

Either way you have a hell of a lot of money left over even after childcare. There are people surviving on a hell of a lot less so im not surprised that they have found you have such excess money leftover

samyc

Thanks everyone
she did go a little mad on the childcare costs, but im just waiting for the breakdown of it through the post
feel better today though than i did yesterday

mitchaa

kerrypn wrote: »

This is just a random thought-but could the OR reject the childcare costs because the child care costs far outnumber the earnings that the person makes as a result of paying for childcare ie it would be more financially viable for them to not work? As I say, this is a question, dont shoot me down in flames-just a thought

You are right, the amount of benefits awarded in this case i find extraordinary.

Samyc has an equivalent income of £50k pa but yet only earns £13.5k through her job. Samy is in the same position as someone else earning £50k with the amount of benefit she receives.

It would be in the governments best interests and the tax payers for that matter if Samy was in fact not working as the childcare costs and benefits she receives far outweigh her taxation contributions through her salary. (£2028pm x 12 is over £24k, to earn £2028pm after tax you would need to be in a job earning £33k)

Samy..That is not a dig at you, just the crazy benefits system we have. £3k pm is a hell of a lot of money and probably what only most families can dream of.

So i agree with you Kerry it would be far more viable for everyone, if Samy was in fact NOT working.

mitchaa

miss_spooky wrote: »

I gave up work as I couldn't afford it. I was earning 40K a year bringing home 1800K 4 weekly, but fees would have been approx 1600K pm for two in fulltime, what with £200 travel I decided to give up & look more local. Then all my other problems started so I couldn't work (but's that's another story).

Sorry your maths are flawed, £40k salary = £2460pm or £2270 every 4wks.

If you were earning £1800 every 4 wks you were earning around £31k.

http://www.thesalarycalculator.co.uk/salary.php

samyc

im just going to have to wait for the breakdown and see what comes of it, see whats on and whats not on
i honestly could have chocked when she said the 400 a month and then when she rang back to say more than likely it will be 500 a month!!! i cried all day yesterday
but at the moment i do understand it was my debt that i am having to pay back but i never expected havin to pay so much back im thinking bankruptcy was the wrong option and maybe i should have just entered a dmp although cccs advised bankruptcy so how ive suddenly become rich i do not know!
bankruptcy has certainly not been an easy option or easy way out!!

mitchaa

samyc wrote: »

Thanks everyone
she did go a little mad on the childcare costs, but im just waiting for the breakdown of it through the post
feel better today though than i did yesterday

I've given you the breakdown already

Your childcare costs are reducing from £340pw down to £150pw, that is a massive difference. (£1473pm down to £650pm)

However, you are not losing that difference (£823) in benefits, you are only losing £475 or so, so that is leaving you with an extra £350 or so.

Like i said, you should probably double/treble/quadruple check your tax credits awards as you will probably be receiving an overpayment and then it will all get messy. If you sort your TX award out, there will be no overpayment and no surplus for the OR. You could be hit both ways here. OR taking his share, and then a big nasty bill from TC asking for it all back.

Just be careful, the tax credits system has a bad reputation for overpayments.

debtinfo

As mitchaa says it might be worth having another talk with the Tax credits, they have been known to get it wrong once or twice, just to make sure everything is correct before you sign any agreement

samyc

mmmmmm.... good point!
I will give tax credits a call later today and ask what my payments should be in Jan etc
last thing i need is an over payment: the benefits i get are a follows:
Tax credits £461 a week (£340 a week childcare currently)
Child Benefit £31 a week (i think? i missed this from my things yesterday she added it on)
DLA £47 a week (for my daughter was told this was disregarded)

then my wage of £245 a week (nett)

mitchaa

So you receive £3400pm? (£786 x 52 /12) (CB is £33.20pw)

Wow. (That is the same as what a £58,500pa job pays)

Sorry, but how can you be struggling? Is bankruptcy really the best option for you? Do you have a lot of debt that you cant pay? (Sorry details in this thread dont mention your debt) If they are going to be taking £400-£500pm off you anyway, I would think doubly hard about going BR.

The childcare element of TC is only 80% of your costs so 80% of £340 is £272. If you are receiving £461pw currently (-£272 in childcare) you must be receiving £189 in CTC and WTC seperate from the childcare amount.

If this is the case, then you should be receiving the same £189pw in CTC/WTC in January + 80% of £150 = £120 so £309pw. Which i suppose isn't too far off the £325pw you stated but still enough to leave you with a hefty overpayment if it accrues long enough.

Best bet is to phone and make double sure.

samyc

ive already gone bankrupt!

I have just rang tax credits with my pay to date earnings and guess what there different to what they told me!!!!

they said that in Jan i would have 59 W/T & 286 C/T = £345 - £149 child care leaves me with £196!
BUT.....
after giving them my pay to date earnings my calculation for jan is now ....
£34.02 W/T & £215.18 C/T = £249.20 - £149 childcare leaves me with £100.20

SO... i have just rand OR back she didn't seem very impressed that she has to send me out a new amount to pay!! so currently no idea what i have to pay back, but this does seem a lot more reasonable to me (the latest figures)