Tax Credits Conundrum

50Twuncle

I was told that to get Working Tax Credits do not depend on amounts of savings - merely the interest earned on those savings

So when I put my figures in to the "entitled to" website - it asks me for the amount that I have in savings then calculates the assumed interest that this earns me - and the rate that this is calculated at is an astonishing 19% NET !!

ie) On £10k savings - it assumes that it increases my income by
£1900 per year - AFTER tax

Something is wrong with this - because the most that I can get on my £10k is 2.5% or £250 per year

Anyone like to comment on this ?
Try it yourselves and see .....

Caz3121

I have tried it but cannot see where it asks for savings (probably me) - you should put the interest in under "other income over £300" and it says "interest and dividends on savings and investments (except tax-exempt savings plans such as ISAs, PEPs and non-taxable National Savings products)" so looks like you put the amount in rather than they calculate it

50Twuncle

I am disabled - so ticked the relevant boxes
Married - wife works 20 hours / week
I claim ESA (Contribution based)
mc dla
wife claims nothing
I meet the requirements for Disability Element
What throws me is "earnings before tax 2009/2010" ie LAST tax year
Plus the next page "WTC received" - I have not received a penny - that is what I am trying to claim.
I admit that I can't see the "savings" bit any more - must have been a figment !!

Caz3121

21Twinkle wrote: »

I meet the requirements for Disability Element

Do you work over 16 hours? If you are not working your wife would need to work 30 hours for WTC.

Tax Credits base their calculations on the previous years earnings

50Twuncle

Caz3121 wrote: »

Do you work over 16 hours? If you are not working your wife would need to work 30 hours for WTC.

Tax Credits base their calculations on the previous years earnings

Last year I was working (earning good money) and this year - so far - I have spent the first 2 months on ESA and now have a job - paying little more than minimum wage
Why does HMRC work a YEAR behind - this means NO WTC this year - next year - they will presumably be working on this years pay ?
What happens if someone is only working on a one year contract ?