How do we find out how the tax credit cut will affect us?

thebabylady

I use the entitledto webiste which has been very accurate in the past. But how do I find out what we will be entitled to once the cuts are in place? Will it suddenly drop as of the next tax year? I just wish I knew how our credits will drop as its really hard to plan anything when we don't know what our income will be.

Does anyone know how we can find this out?

Thankyou.

themonkeybutler

Dont rely on tax credits income to plan anything is the simple answer. Plan within your means without TC, and then anything else that comes your way is a bonus. thats a serious response - if you treat it as extra, then you will always be able to pay for everything you have to, but may get a bonus of a little extra from TC to help with the other things which arent essential. Pretend you have zero TC coming next year, and you will be fine.

sunnyone

themonkeybutler wrote: »

Dont rely on tax credits income to plan anything is the simple answer. Plan within your means without TC, and then anything else that comes your way is a bonus. thats a serious response - if you treat it as extra, then you will always be able to pay for everything you have to, but may get a bonus of a little extra from TC to help with the other things which arent essential. Pretend you have zero TC coming next year, and you will be fine.

Post of the week, there are far to many people relying on tax credits to pay their way and/or service debt and since tax credits are only given at the whim of a goverment and can be pulled at any time its asking for trouble basing such major, long term finacial planning on things like morgages on them.

[Deleted User]

I don't know where we find out, obviously childcare tax credit is being reduced by 10%. I'm just looking at it that what with the VAT increase in Jan and the National Insurance Increase in April that 2011 is going to be a very difficult Year for many of us! I am currently reveiwing everything in my house to try and get costs down managed to get £65 off my house insurance so far but I'm dreading 2011

DanE2010

sunnyone wrote: »

Post of the week, there are far to many people relying on tax credits to pay their way and/or service debt and since tax credits are only given at the whim of a goverment and can be pulled at any time its asking for trouble basing such major, long term finacial planning on things like morgages on them.

Tax credits will be here next year and it was said in the cuts that a universal benefit will be introduced but not in the next 2 goverments so not really being pulled at the whim, they know they have to get this universal benefit right before its introduced so in the mean time there will be tax credits, its not just gonna dissapear and leave people with nothing suddenly one day, you can find out on the budget website what changes are happening next tax year for tax credit claiments, the baby element is going but there will be a new toddler element, it depends on your income, but the information is there so you can at leat budget for the next year or two are tax credits will certainly still be here as detailed in the budget, this link here has a table showing how it will effect certain wages over the next few years http://www.thisismoney.co.uk/news/article.html?in_article_id=506806&in_page_id=2 so give you a rough idea of what to expect.
Id also like to add, many people rely on tax credits because they are on very low incomes, and thanks to the state of the economy that is alot of people, also alot of people havent had a pay rise last year or in the near future in spite of the fact the cost of living has gone up, so yes some people rely on tax credits because if they didnt have it they'd be screwed, and when tax credits goes it will be replaced with something else to support low income households, granted it wont be as generous to those on middle incomes, but those on low incomes will be offered support, if the goverment dont do that they know they would have an even bigger situation on there hands.
hth