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Tax Credit rumours
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LizzieS_2
Posts: 2,948 Forumite
http://www.telegraph.co.uk/finance/financetopics/budget/7836827/Child-tax-credits-to-be-cut-for-2m-families.html
Will MSE do an article showing the true implications of these please.
Taking the lowest figure of 25K and assuming a family of 2 adults and 2 children with just 1 adult working (saves messing with chidcare costs). With abolition of tax credits for this family they would get earnings of £368.73pw after tax and ni.
If tax credits were to remain the same for those with household incomes of under 25K, the same family again using an income of 18K would get £275.65 after tax and ni plus £100.55 tax credits = £376.20pw.
Realistically tax credits are not going to be changed to make it better to earn a lower salary - any adjustment from the current 50K will have corresponding reductions for every household with lower incomes.
Will MSE do an article showing the true implications of these please.
Taking the lowest figure of 25K and assuming a family of 2 adults and 2 children with just 1 adult working (saves messing with chidcare costs). With abolition of tax credits for this family they would get earnings of £368.73pw after tax and ni.
If tax credits were to remain the same for those with household incomes of under 25K, the same family again using an income of 18K would get £275.65 after tax and ni plus £100.55 tax credits = £376.20pw.
Realistically tax credits are not going to be changed to make it better to earn a lower salary - any adjustment from the current 50K will have corresponding reductions for every household with lower incomes.
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