CTC cuts to £40k income families - based on 10/11 income?

chivers1977

My OH was unemployed from April to end October 2010 and received JSA (c) for this time. His FT annual salary is £17500. I will earn approx £26000 during the tax year. We currently get the basic £545 CTC.

Clearly on our joint salary we are above the new £40k CTC threshold.

However as our earnings for the 10/11 was significantly less than this, will we escape the CTC cut for another year?

Thanks in advance!

zagfles

Yes!

If you earned less than 40k this year AND you'll earn less than 50k next year then you'll still get the family element. (the disregard for income increases next year is 10k). But if your income exceeds 50k next year then you'll have to pay some/all back.

But you'll probably lose it all in April 2012