Child Tax Credits, totally confused?? What are we entitled to?

dantheman2010

I did that the other day after the suggestion, however it was only last week I was given the Sky HD subscription free for 1 year because of a complaint letter due to some problems we had with the service. So it was a no go for now.

worriedfirsttimebuyer

You should definitely get the Childcare element of Child Tax Credit when your OH goes back to work, as our joint income is double yours and we still get something. I have just gone back after a year's maternity leave. I work 20 hours and use a nursery 2 days per week at a cost of £66 a week. We get £7 a week towards it (I know it's not much but it all helps - we are skint), going up to £21 a week in April when it will be based on our 2010/11 income (significantly lower).
We've been very very skint but it was doable.

property.advert

dantheman2010 wrote: »

Sorry yep I do have life insurance, enough to completely clear the mortgage. Yes my partner would prefer to go back to work, undoubtedly.

Here is my confusion;

Child tax credits on MSE say we would be entitled around £40.00 per week and only £10 per week for working tax credits.

Where as HMRC said slightly more, cant remember what it said now.

Yet I just completed the benefits advisor section of direct.gov.uk and did it hyperthetically, everything as it is now but said we had an 11 month old son with weekly child card costs of £155.00 per month (same as what I put for the amount on the MSE calculator) and that said £65 per week child tax credits and £255 per week working tax credits.

I am just totally confused.

Who or where do we go to find out the exact information?

Life assurance to clear the mortgage is woefully inadequate. What will replace your income and provide for the children as they grow up, where will their university education fees come from ? What happens if your other half dies ? could you give up work and live on buttons that the state provides ?

A million of cash where you can draw down 3% to allow it to grow only gives you £30,000 a year in today's money. Pay a mortgage off, put some away for the kids education and you only have half that left. Then you are down to £300 a week before tax. Not a great life is it ?

The brutal reality is that we need assurance for far more than we initially think and you have to get your head around the actual amount of time you need cover, certainly until the youngest is 25.

dantheman2010

Fair point, but if I die then there is a house worth over £120k owned outright. There would then be the possibility of selling, taking say £110,000 and them renting. £110k is a tidy sum sitting in the bank wouldnt you say or am I missing something with that cover?

Chard52

Tables at the hmrc website might be of use:

hmrc.gov.uk/rates/taxcredits.htm


I believe total income (pre-tax) should also include the benefit in kind of your company car. You can deduct the cost of pension contributions and also only count savings earnings over £300.

I doubt you'll get anything more than the £545 family element, and even that appears in question for future years.

mickym

Dantheman - Well done on doing some sensible planning.

You sound a bit like me actually from about 2 years ago. Now we have little one here and missus is currently on her 6th month of SMP.

We have managed quite well actually (i earn around same as you, but we rent rather than mortgage)

However im trying to suss out if we are entitled to any help once we are into the last 3 months of SMP as it is unpaid, and then after when the missus looks to go back to work part time.

I have to agree some of the online calculators are a minefield of info.

You do have to tighten your belt a bit, but i agree with you that if others are entitled to claim then you can at least try to (even if you cannot).

I may make a few phone calls tomorrow to see if i can get my questions asked rather than trying to go round in circles with the calculators.

karenx

No you wont get any other benefits for the other 3 months as you have chosen to take it off when you could be going back to work.

flea72

karenx wrote: »

No you wont get any other benefits for the other 3 months as you have chosen to take it off when you could be going back to work.

wrong. the only thing you cant claim when on AML is help towards childcare - tax credits can actually support a lifestyle choice, such as extended mat leave, for lower earners

as tax credits are based on income, if your income drops, then you are within your rights to inform HMRC and have your claim reassessed based on your new income

this may mean your entitlement increases, but on the whole unless the main bread winner is on a fairly low income, then your entitlement doesnt change

F

mickym

i gave the 'entitled to' people a call today, they were extremely polite and helpful.

However as I earn 25k that derails any chance of receiving additional help in benefits other than what we get at the moment (Child Benefit and Child Tax Credit) . Your outgoings are not considered at all... so bear this in mind so you can budget and cut out what arent essentials.

The last three months of unpaid maternity pay is considered our choice so we will have to bear the brunt of the lack of financial income of my fiancee.

Told me to call them back after april as it ill be a new tax year and perhaps things may be different when they look to calculate the previous years earnings.

Only way we could get help is claim for Employment Support Allowance...but this is for people who become out of work during their maternity leave (or end of it), but to claim this you still have to be actively seeking work.

Hope this info helps.

dantheman2010

mickym wrote: »

However as I earn 25k that derails any chance of receiving additional help in benefits other than what we get at the moment (Child Benefit and Child Tax Credit) . Your outgoings are not considered at all... so bear this in mind so you can budget and cut out what arent essentials.

Thanks for this, without being too nosey what do you get Child Benefit and Child Tax Credit. From what I can gather we would get £20 per week child benefit and £545 per year for Child Tax Credit.

Is this correct and also do you get this before the baby is even born?

Thanks