Advise on council tax benefits

funkyali

why does it ask me twice? under Income for Tax Credits 08/09 it asked me for income before tax which i put in £24k and £12k.

Now it doesn't mention anything about the CTB. I thought it was a bit strange. Basically it was working it out as thought I had a gross earnigns of £0 and therefore I should have had the benefit.

Just a few other questions.

Whats the difference between net and gross salary(how do i work these two out)? how does childcare vouchers (salary sacarifice scheme) play its part in
these figures.

Just out of interest sakes how much could one receive before one has to notify the tax man? I was going to see if I could find odd jobs online like web development that have a one off payment to an individual for help on building web sites.

funkyali

thanks guys for all your help and I just know something was fishy else more people wouldn't be paying their CT.

karenx

funkyali wrote: »

why does it ask me twice? under Income for Tax Credits 08/09 it asked me for income before tax which i put in £24k and £12k.

Now it doesn't mention anything about the CTB. I thought it was a bit strange. Basically it was working it out as thought I had a gross earnigns of £0 and therefore I should have had the benefit.

Just a few other questions.

Whats the difference between net and gross salary(how do i work these two out)? how does childcare vouchers (salary sacarifice scheme) play its part in
these figures.

Just out of interest sakes how much could one receive before one has to notify the tax man? I was going to see if I could find odd jobs online like web development that have a one off payment to an individual for help on building web sites.

All jobs would have to be notified as all jobs you will be paying tax on, second jobs are usually taxed at 20%.

bestpud

Gross salary is before you pay tax and net is what you actually receive.

You can work it out with the link I posted above.

funkyali

So if I helped someone online with their website over the weekend from my own free time and they paid me £100 directly into my bank account for the once off work I did. I would have to notify my company?

Of course I dont want to do anything illegal so I thought I would ask here before taking it a step forward. In case I have to notify my normal work, tax man benefits office etc.

karenx

You wouldnt have to notify your work no. But as you are "earning money" you have to notify the tax man so they can tax you. Otherwise its illegal to work cash in hand

bestpud

Have a read through this page. Hopefully it will answer your questions.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_10010537

If not, I believe there is a tax board on here...?

ETA: here it is - they may be better able to advise you:

http://forums.moneysavingexpert.com/forumdisplay.html?f=22

Macro_3

funkyali wrote: »

ok this is what i put

couple.
1 child under 20 and receiving child benefits
coucil tax: 1,139.04 a year
What is your housing status? Morgaged or own home
Are you or your partner a British or Irish citizen? Yes

next

child DOB : 12/01/2008 (of course this is changed)
Child has no disabled.

next

Age and Disability Status

Me : 26 partner : 36

Hours worked per week : 30+ and partner 16-29 hours

No to the rest of the questions

next

Benefits you received.

Shoudl all be no as I dont receive any of these

next

Benefits partner receives

same as above

next

Working Tax credit

What are your average childcare costs per week? 81.00 per week

next

Income for Tax Credits 2008/09

income for me before tax:£24,018.99 for partner £12,405.85

what is this "Gross occupational/ work/ private pension contributions (2008/09):"?

next

Tax Credit Award
should say 10.50

next

Net Income

Shoudl be no as its not applicable:

next

Net incomes:

only chaneg the nation insurance staus for me and my partner to contracted-in employee

next

and you get the results saying i can get council tax benefits.

Are you putting a net income figure in here? If not, the calculator may be assuming that your net income is zero!

Vixie_Pixie

ok your applicable amount is 100.95+56.11+17.30 = 174.36

if you take your net earnings for both you and your partner per month, multiply by 12 and divide by 52 to get a weekly figure.

Add to this your weekly CTC (chb is disregarded for ctb purposes so dont add this)

Deduct £10 and 16.85 (earnings disregards)

Take the total weekly income and deduct your applicable amount from this, if your weekly income is higher than your applicable amount (which i think it will be) make note of this figure

Convert your yearly council tax bill by dividing it by 365 and multiplying by 7.

calculate 20% of your excess income and deduct this from your weekly ctax liability. If the 20% excess income is more than your liability your income is too high for ctb.

Sorry its a bit complicated. HTH