Help, are tax credits being dropped for anybody over £25,000 in 2012

momer79

Hi,

I am earning 25k per year and i have got 2 kids. Our total household income is 25k as my wife doesn't work.

Recently i got a job offer of 30k, i am wondering if its worth taking 30k bcz i heard that from 2012 there will be no child tax credit for families earning 30k or more?

Thanks
Steve

LiveLoveLaughx

Hi,

I am about to leave my job which pays £15,000+ for a job that will pay £25,000+.

I am a single mother and have 1 child. Will I lose all my benefit entitlements ?

[Deleted User]

Which benefits are you currently receiving?

zagfles

LiveLoveLaughx wrote: »

Hi,

I am about to leave my job which pays £15,000+ for a job that will pay £25,000+.

I am a single mother and have 1 child. Will I lose all my benefit entitlements ?

You'll still get tax credits, but it'll reduce a lot, though not straight away because of the disregard.

As a rough guide your tax credits will eventually reduce by £4100 per year, with probably no reduction now (assuming you've been on £15k since April 2011), maybe about £2000 reduction in April 2013 and the rest in April 2014.

If you need more childcare or your hours have gone above 30 with the new job, you could get an increase in the elements which will offset some of the loss.

If you get other benefits like HB/LHA they will reduce too.