Tax credit renewal - general questions (merged)

fmhm

just going through my paperwork (as you do at 1.30 am!)
i'm reading thorugh my tax credits award for 06/04/2011 to 05/04/2012 which i must have done when i received it but have gone blank on something when re-reading.

Part 2 how we work out your tax credits:
WOrking tax credit elements:
after the table showing figures for basic, second adult and 30-hour element
it says 'reduction due to your income' and a figure.

why would you get a reduction, whats the criteria for it? pls

our total earnings are £4940 each. so £9880 total.

ati73

Hi!
Can You explain how to calculate my tax credit benefit for the year of 2012/2013.
I'm currently receiving 52.04 Pounds/week working tax credit.It is based on the income of 1600 pounds from year april 2010-april 2011.
My income will be 13000 pounds by the end of this tax year(april2011-april 2012). The increase is more than the 10000 pounds disregard. How much income the next year(2012-2012) tax credit benefit will be based on? How much benefit can I get per month based on the 13000GBP income minus the 10000GBP disregard?
Thank You

worto03

Hi - I hope someone can help me when it comes to renewal time what do I need to declare?

I work full time

I have a yearly bonus from my employer - generally around 2k - I assume I have to delcare that?

I pay into 3 sharesave schemes (so payout £240 a month shown on my paysilp as deductions) 1 sharesave scheme matures each year do I declare all of that or just the difference between what I put in and what I got out (as I would for capital gains tax - if I ever made that much!)

Is it take home pay (after tax and deductions) I declare as wages?

Is it still the case that savings in ISA's don't come into it (we've been saving to move house) but I may be better off overpaying my mortgage if we are going to get penalized for having savings.

sorry for all the basic questions, my partner normally deals with this but as a family as far as I can tell we are right on the borderlines of things so there maybe small things I can change for the better, at the moment it looks like I could do less overtime getting to spend more time with my family and we'd actually be better off yearly!

Anyway thanks for any help.
worto.

Kellyr_2

Hiya new to this forum. Would like some advise on tax credits if any1 can help. I don't work as I ave a 2 yr old son. My partner is self employed. I estimated last yr 10/11 his profit would be 20k. Round about the same as yr before. I've just got tax credits letters through saying I'm getting £700 underpayment. But my partners actual income is 27k. wat will happen when I tell them the correct income. After 6th April will my payments go down. I'm confused where this underpayment as come from. An also I rely on the money I get to pay for my bills. Any advise would be very grateful. X

marsbar20

Hi - advice needed please

just had an inheritance of £30k that i want to invest for 3 years then will pay off a lump sum from my mortgage when my current deal comes to an end.

i intend to use my ISA allowance but am struggling with where to put the rest as i cant afford to loose any wftc as im a single mum. i have been told i can put the money into pemium bonds and dont have to declare to wftc - is this info correct as it may solve my problem!

many thanks

pfpf

2 points.

when declaring income for TC i know you have to declare interest from savings but not the capital.

do you declare tax free interest either from ISA's or from monies held by a non tax payer in your home?

also, do you declare Premium Bond "winnings" from the previous tax year?

thanks.

zagfles

pfpf wrote: »

2 points.

when declaring income for TC i know you have to declare interest from savings but not the capital.

do you declare tax free interest either from ISA's or from monies held by a non tax payer in your home?

also, do you declare Premium Bond "winnings" from the previous tax year?

thanks.

You don't declare ISA or premium bond winnings at all, as they're tax free and you don't declare tax free interest.

You do need to declare ordinary taxable interest even if paid to someone who earns too little to pay tax. Though the first £300 is disregarded

zagfles

marsbar20 wrote: »

Hi - advice needed please

just had an inheritance of £30k that i want to invest for 3 years then will pay off a lump sum from my mortgage when my current deal comes to an end.

i intend to use my ISA allowance but am struggling with where to put the rest as i cant afford to loose any wftc as im a single mum. i have been told i can put the money into pemium bonds and dont have to declare to wftc - is this info correct as it may solve my problem!

many thanks

That's right, as above for tax credits you don't declare capital, only taxable interest over £300. Premium bond winnings aren't taxable so you don't need to declare.

BUT if you claim housing benefit/council tax benefit or other means tested benefits you will need to declare the capital and you'll be over the limit.

lobbyludd

seems to be much confusion about the upcoming tax credit changes. I have NEVER understood why HMRC don't publish a calculator for the coming tax year before it arrives (not after). Given that the changes were "announced" (in a table in an annex) in June 2010, they presumably have had time to sort out the calculations?

People on tight budgets need time to plan to adjust to changes like this (perhaps needing to give notice to change child-care arrangements, or juggle working hours etc), and as personal circumstances vary wildly the case studies on the HMRC website can only be useful to a tiny minority.

chrisvoi

Hi
Does anyone know whether Education Maintanace Grants including childcare part count as an income towards Tax Credits.
I am from Northern Ireland where the above grands are still available.
Thank you.