WTC changes in 2011? how do I know how much I will get starting April ?

myfairrlady

Hello
I wonder if anyone can advise me. At present I am getting working tax credit and child tax credit as I work full time and my son is full time in a nursery. However I would like to know how much I will be getting starting April and I cannot find any calculator for the new coming financial year? My income for the year 2010/2011 is £28000 and I pay about £675 per month for my son's nursery. My income increased in comparison to previous year because I got a better job and I am sure I will be getting less now.
Are there any calculators available ?
Thank you in advance.

zagfles

Not sure if there's a calculator anywhere but you can do it the hard way - rates are here: http://www.hmrc.gov.uk/rates/taxcredits.htm

Unfortunately you're probably looking at a big drop - as well as any drop because of your increased income, the childcare element is going down to 70% of cost and the withdrawal rate in increasing to 41%. The child element is increasing but with just 1 child on 28k this won't make up for the withdrawal rate increasing.

myfairrlady

zagfles wrote: »

Not sure if there's a calculator anywhere but you can do it the hard way - rates are here: http://www.hmrc.gov.uk/rates/taxcredits.htm

Unfortunately you're probably looking at a big drop - as well as any drop because of your increased income, the childcare element is going down to 70% of cost and the withdrawal rate in increasing to 41%. The child element is increasing but with just 1 child on 28k this won't make up for the withdrawal rate increasing.

Hello
Thank you for the link but unfortunately I am unable to work out how much I will be getting based on this information.

I wonder how come there are no calculators with new rates available yet?

flea72

just add up the elements you are entitled to, and then do the sums based on your income

with an income of £28k you will only be entitled to basic rate tax credits of about £550/yr - thats this year, next year, etc

you already earn too much to get anything extra. you were just lucky this year, that you got to use the disregard, otherwise you would have been getting basic rate tax credits all year, rather than the £2k+ that you got

F

zagfles

myfairrlady wrote: »

Hello
Thank you for the link but unfortunately I am unable to work out how much I will be getting based on this information.

I wonder how come there are no calculators with new rates available yet?

First add the elements you are entitled to. Eg assuming you work 30 hours and no disabilities, and your childcare costs are eligible:

1920+1950+790+675*12*0.7+2555+545 = 13430

Take off income reduction (28000-6420)*0.41 = 8848

Makes £4582

myfairrlady

Makes £4582

Yes your assumptions are correct. Does it mean £4582 is the total WTC and CTC that I am entitled to this year and per month it means £4582/12 ? This is a significant drop indeed. I really appreciate your help. I should probably see if childcare vouchers make sense for me this year.

zagfles

flea72 wrote: »

just add up the elements you are entitled to, and then do the sums based on your income

with an income of £28k you will only be entitled to basic rate tax credits of about £550/yr - thats this year, next year, etc

you already earn too much to get anything extra. you were just lucky this year, that you got to use the disregard, otherwise you would have been getting basic rate tax credits all year, rather than the £2k+ that you got

F

I think you've missed her childcare costs

zagfles

myfairrlady wrote: »

Yes your assumptions are correct. Does it mean £4582 is the total WTC and CTC that I am entitled to this year and per month it means £4582/12 ? This is a significant drop indeed. I really appreciate your help. I should probably see if childcare vouchers make sense for me this year.

Yes 4582/year total WTC & CTC. They pay every 4 weeks so divide by 13 rather than 12!

HMRC have a calculator for vouchers or tax credits for childcare - but not sure if it works for next year:

http://www.hmrc.gov.uk/calcs/ccin.htm