WTC and CTC - New baby ( long story!)

Rebchappers

I am completely lost and need some help! I am 25 years old and currently earn £21k pa before deductions. My husband is 27 and earns £31k pa before deductions. We have both never claimed any benefits, so this is all new to us.

We are lucky enough to be expecting our first child in May, and have been looking into any help that we may be able to get. I will be going on maternity leave from 1st April 2010 and then be a stay at home mum. Obviously, we are going to have a huge drop in income and this may not be sustainable, but i would love to spend as much quality time with our child as possible. So, we have been onto the Directgov website and used their benefits adviser application to see if we would be entitled to anything.

There were 5 or 6 pages of quite in depth questions asking about our salary, other income etc which were all truthfully and accurately completed. On the results page its says that based on our CURRENT circumstances ( both of us working full time with a combined income of £52k, no children) we would be entitled to £86.87 PER WEEK in Working tax credit..... is this correct? I know its only an estimate, but i didnt think we would be entitled to anything as we have a decent income between us.

I then did a comparison, for once the child is born, with my Husband working full time ( salary of £31k) and no income for myself as i would be looking after the child. We would have a child under the age of 1... The results said we would be entitled to £86.87 per week WTC, £63.91 per week in CTC and £20 per week child benefit.

Great i thought.... so i have this morning called the helpline for a claim pack to get it all sorted before the baby arrives. The chap on the phone asked me the same questions ( although not as many) and i told him my current circumstances, and the fact i would be giving up work to look after our first baby in the new tax year... he said we wouldnt be entitled to ANY working tax credit either now ( understandable) or in the future - despite me losing £21k salary. Plus we would only be entitled to £21 per week child tax credit.

How can the figures be so different?

I also understood that the first time you made a claim, they worked out your entitlement based on the previous years income. Therefore, if i was to put a claim in now, although i probably wouldnt get anything, once the new tax year arrives, they would adjust the entitlement to reflect that i am no longer working. However, the chap on the phone said that they cant send any forms out now for the new tax year, and i need to ring back in MAY once the baby is born and make a new claim then.

I am soooo confused

Can anyone offer any advice?

AnxiousMum

You can only claim for your child once the child is born. They need details such as child's name, date of birth, child benefit file number etc., and you don't have that info until the baby is born Congratulations by the way! You're in for some fantastic years ahead of you

Did you recheck the figures you put into Entitled to? I was surprised at the figures you put up as our incomes are about the same in total, and we have five children with four of them being of child benefit age. All we are entitled to is £10.40 (family rate?) for child tax credits and then child benefit. That will likely drop off next year due to April pay increases.

krisskross

I would think your only entitlements will be the basic ones. £20 or so a week child benefit and the child tax credit which will be doubled for your child's first year so about £20 a week but then will drop back to the basic £10 a week.

The cut off for working tax credit is less than £18K so on your husband's salary alone you cannot get this.

enjoy your baby.

Rebchappers

Thank you both for your replies... i checked, double checked, and even did it two days in a row.... just to check it wasnt a glitch! The figures are exactly as i have quoted, and i have the print outs in front of me! Very strange.

I must admit... for us to get £86.87 per week now, on our current circumstances, is stupid. Yes, we all like a bit extra, but we are hardly on the breadline.

But im intrigued as to how the figures can be so different

I understand about having to wait until the baby is born as well... i have just heard so many conflicting stories!

Caz3121

are you puting in monthly or annual salary as when I ran it with your annual salaries it is clear you get 0 WTC either before or after the baby

Rebchappers

I have put in the monthly figures... but why would it make a diference? at the end of the calculation it does a summary which says currently we earn £686.06 a week between us... and we are entitled to £86.87 WTC bringing our total up to £772.93 per week?? The same calculations were done given the new circumstances ( using monthly figures) and the figures quoted

I have used the benefits adviser application from the Directgov website... is this different to entitledto?

x

inarut_2

i think but i might be wrong that because you used the directgov calculation site that it calculates what you would get from todays date to 6th april,the entitled to calculates for the full year, i may be wrong but i would use the entitled to figures to give you the best idea

Caz3121

Rebchappers wrote: »

I have put in the monthly figures... but why would it make a diference? at the end of the calculation it does a summary which says currently we earn £686.06 a week between us... and we are entitled to £86.87 WTC bringing our total up to £772.93 per week?? The same calculations were done given the new circumstances ( using monthly figures) and the figures quoted

I have used the benefits adviser application from the Directgov website... is this different to entitledto?

x

I don't know about the calculation but it asks for the annual figure
What are your earnings from all paid jobs (but not including self employment) [URL="javascript:DoGlossary('beforedeductions')"]before deductions[/URL] between 6th April 2008 and 5th April 2009?
so it looks like it is counting your monthly salary as an annual one hence saying you qualify when you don't.

Entitledto 'should' will give you the option to enter a weekly, monthly or annual figure but looks like this one expects the annual

svmitche

Speaking for our family, we were on similar salaries to you before DS was born. when he was born and I was on maternity pay (supplemented by employer) my earnings for the first year of DS's life were £10,000 lower than a normal year. We received just over £1000 per year CTC (including under ones portion) but no WTC and child benefit at £18 per week.

Once he turned one, we lost the under ones portion, so our CTC is just over £500 per year and our child benefit is £20 per week at the new rate. I then gave up work, so also bear in mind I lost the remainder of my 'salary' that I was paid during my maternity leave, but the CTC remained at the previous level.

Basically we lost my entire salary and the CTC was not altered at all, as the amount my partner is earning is nowhere near the minimum allowance for the CTC (if you see what I mean...).

Speaking from experience re losing the salary and still surviving on one salary, it is manageable (and not miserable) if you trim back where you can, shop sensibly, meal plan etc etc. We didn't have savings to rely on, but we also had very little debt.

If you can make the figures work then it is so lovely to be home with your child while they are little - although anyone who says it is perfect and they don't get a bit bored and frustrated sometimes is either on prozac or stretching the truth!

lorelai34

You can put your tax credit claim in just now you don't have to wait until May. As long as you are 25 or over and work at least 30hrs per week your claim will be assessed for working tax credit. Due to the high household income you would receive an award letter advising you of a nil entitlement. However when you baby is here you can simply phone them and advise them of a change of circumstance and the would take the baby's details and the claim will then assessed for ctc.

flea72

there is definitely something wrong with the directgov website, benefits calculator

have just gone through a rough setup, based on the OPs income and it says a household with an income of over £750 week, should be getting £86/wk WTC

that is sooo wrong

F