Child Tax Credits, what does the quoted amount mean?

helpme_115

Well I did the "Do I Qualify" thing on the HMRC site and it said im entitled to £279 but didnt say whether that was a week/month/year.

We are thinking of starting a family and getting an idea on what will be coming in and going out, im guessing the above is a month but wanted to confirm.

If there is anything else you may think we are intitled to please let me know, i work 35hrs at £28,000 a year and the wife works 37.5 at £10,500 (though this should be going up to £14,000 soon)

Thanks

Ian

DanE2010

I think the HMRC site says "this is what your entitled to from todays date up until the end of the tax year" so id say thats a yearly figure but you havent said what you out in the calculator so I dont know but im guessing you put 1 baby in?

From April the ctc threshold is going down to £40,000 per year and your HH inc is pretty near that, altho if your wife goes on maternity leave you can deduct the first £100 for every week she is on stat mat pay, which would lower your HH inc.

helpme_115

yeah sorry it was 1 baby, so it would be about £90ish a month?

Indie_Kid

After April, there is also no new baby premium. (this is currently £10.50 a week)

DanE2010

£279 from todays date up until the end of the tax year for 1 baby on your HH income id make it around £21 per week £85 every 4 weeks, but bear in mind this is on the current tax credit rates, it will be different from the 6th of April as those who earn £40,000 and over wont get any CTC and they are increasing the rate in which tax credits is withdrawn (taper points) so you could recieve less than the £279 estimate.

zagfles

DanE2010 wrote: »

£279 from todays date up until the end of the tax year for 1 baby on your HH income id make it around £21 per week £85 every 4 weeks, but bear in mind this is on the current tax credit rates, it will be different from the 6th of April as those who earn £40,000 and over wont get any CTC and they are increasing the rate in which tax credits is withdrawn (taper points) so you could recieve less than the £279 estimate.

Not quite - £40k will be the point at which the family element starts being withdrawn so someone on £40k would get the family element in full. But it (normally) would be gone by £41300 (except for large families or where childcare costs are high).

DanE2010

zagfles wrote: »

Not quite - £40k will be the point at which the family element starts being withdrawn so someone on £40k would get the family element in full. But it (normally) would be gone by £41300 (except for large families or where childcare costs are high).

thanks, think I was jumping ahead of myself there as I know it gets even tighter in the following tax yr 12/13 where the £40,000 will be removed altogether.

In a move not announced by the Chancellor but buried in the Budget documents, from 2012 this £40,000 income limit will be withdrawn. It means that families with one child would receive no tax credits once they earn above £23,275. Crucially, these benefits are calculated on a combined family income – so middle class families earning £40,000 may be a couple earning only £20,000 each.


Read more: http://www.thisismoney.co.uk/news/article.html?in_article_id=506806&in_page_id=2#ixzz1A0pZWMVe