Tax Credits - next budget essential changes

LizzieS_2

Come the next budget there is one further change our Government do have to make to complete the changes already announced this week.

There is a first income threshold of £6420 - this is the amount you are allowed to earn (if claim includes wtc in their calculations) before your gross award is reduced.

There is also a threshold for those entitled to ctc only - £16190. Again this is the amount you are allowed to earn before your gross award is reduced.

There is a link between these 2 figures - using an income of say 17K (actual salary for both) you will get the same tax credits whether you work 29 hours (must be under 30 as that is the way it was created) and your award includes wtc (will be nil paymentwise), or you work 15 hours and can only claim ctc.

Two options are available now:

1) Increase first income threshold to £6898.
2) Reduce threshold for ctc only claims to £15712.

(1) is the best for claimants.

Government are refusing (on TV) to deny they will be making further changes. Above shows they will have to but of course whether they stick to the minor necessary changes is another matter.

nannytone_2

Just for my on satisfaction I had a look on entitledto just to see how this works. Ive never claimed any tax credits.
For a childless couple earning 19k a year in a mortgaged property with a yearly council tak bill of $1,100 they would get nothing.
with everything else the same, but 1 child they get £46. ctc plus 20 cb.
with 2 kids they get £89 a week plus £35 cb.
does it cost an extra £124 a weejk to have 2 kids in the house? after all the mortgage and ct cost the same regardless. and as we are always told its cheaper to feed 2 people once than 1 person twice. isn't it cheaper to feed 4 people once than 2 people twice too?

think i'll havta drop me a couple of kids before its too late lol

andyandflo

nannytone wrote: »

Just for my on satisfaction I had a look on entitledto just to see how this works. Ive never claimed any tax credits.
For a childless couple earning 19k a year in a mortgaged property with a yearly council tak bill of $1,100 they would get nothing.
with everything else the same, but 1 child they get £46. ctc plus 20 cb.
with 2 kids they get £89 a week plus £35 cb.
does it cost an extra £124 a weejk to have 2 kids in the house? after all the mortgage and ct cost the same regardless. and as we are always told its cheaper to feed 2 people once than 1 person twice. isn't it cheaper to feed 4 people once than 2 people twice too?

think i'll havta drop me a couple of kids before its too late lol

Hey I like that! It is a very good way of looking at it.

Mind you my OH is 66 and past it (having kids that is!) Are there any young fertile females out there so that I can top up my Pension Credit/Tax Credits??