child tax credit from 2011 2012

no-oneknowsme

If your household income hasnt changed then i reckon your tax credits will go up.

There has been an increase in the child element of tax credits and also an increase in the family element.

Think it an extra £285 per child

gillyrah

Can anyone help with my decision as to whether to return to work after maternity leave?

This year I will have earned 8,300 (but 39 weeks of SMP so disregard 3900 = 4,400)
My husband will have earned about 16,000 from paid employment but made a 4000 loss from self employment so net = 12,000

Next year we expect less. Same rates for hubbie (net 12000, possibly less depending on what happens with his hours but keep this figure for simplicity)
I will have one of 2 options:

1) Work 3 months @ 380 a month, childcare costs 70 a week but only for 6 weeks as 6 week holiday (so 1140 income 460 childcare in total), then quit my job
2) Work the full year @ 380 month with same childcare costs, so 4560 income, 3640 childcare costs.

Basically, I'm hoping that I can leave my job as I hate it and I love my baby! I'll be paying 20 a week to actually get to work too. I'm hoping that what I lose in meagre income I'll make up for in WTC and CTC but I need to confirm this before I do anything drastic. I can't find a calculator to help me with next year's tax credit payments anywhere.

Thank you in advance

zagfles

gillyrah wrote: »

Can anyone help with my decision as to whether to return to work after maternity leave?

This year I will have earned 8,300 (but 39 weeks of SMP so disregard 3900 = 4,400)
My husband will have earned about 16,000 from paid employment but made a 4000 loss from self employment so net = 12,000

Next year we expect less. Same rates for hubbie (net 12000, possibly less depending on what happens with his hours but keep this figure for simplicity)
I will have one of 2 options:

1) Work 3 months @ 380 a month, childcare costs 70 a week but only for 6 weeks as 6 week holiday (so 1140 income 460 childcare in total), then quit my job
2) Work the full year @ 380 month with same childcare costs, so 4560 income, 3640 childcare costs.

Basically, I'm hoping that I can leave my job as I hate it and I love my baby! I'll be paying 20 a week to actually get to work too. I'm hoping that what I lose in meagre income I'll make up for in WTC and CTC but I need to confirm this before I do anything drastic. I can't find a calculator to help me with next year's tax credit payments anywhere.

Thank you in advance

So looking at the marginal difference between the 2 options, earn 3420 more, and pay 3180 more in childcare.

No tax or NI on the 3420 as it's within the allowance. It'll reduce tax credits by 1402 (41%) leaving you with 2018. (a tiny amount may be disregarded as your income next year will be slightly higher than this year with option 2)

Tax credits should pay 70% of the extra 3180 in childcare so you pay 30% ie 954.

So net gain is 1064. But travel costs of 20pw will eat up most of that.

I'm assuming your husband works 30 hours so you don't lose the 30h element with option 1.

& Suggest you double check my maths!

gillyrah

Thank you so much for that. I just couldn't get my head round it at all but I thought I wouldn't be much better off. Hopefully I can just get my 3 months out of the way so I don't need to pay off my maternity pay (less than 1000 but we're skint) and become self employed in some way.

:beer:

newwen112

Also what does the income disregard mean?

jellybean09

debtiva wrote: »

Hi,

I just need someone to clarify the cut off for getting tax credits 2011-2011.
has it now gone down to a family earning no more than £40,000 a year?
Also is it correct that from april 2012 the cut off for getting child tax credit is a couple joint income of £25,000 a year????

We have 6 children, 5 that live with us all under 16.

please can someone let me know

thanks

http://www.hmrc.gov.uk/taxcreditsbudget2010/index.htm try this, also you can use their entitlement calculator on the same site.

gillyrah

When you are on SMP, £100 a week is disregarded. This means if you earn £120 a week, you only state £20 as your income.

gillyrah

It's also worth noting that if you get maternity allowance, the entire amount is disregarded so you would state your income as 0. I don't think this is done for you, you have to do it yourself.

affordmylife

we have been paying back a previous overpayment for about 4 years. this month we get a payment of about £11 and next month we get £40 and then it continues.

however, since 4 years ago our income has changed dramatically and im sure we will end up owning them money again. such a bloody waste of time.

i hate tax credits - so pointless.

Irene_00

Hi!
I needed some advice. I ork as a supply teaching assistant and my husband works full time i.e. 36 1/2 hrs. We get child tax credit and although both r incomes combined is less than £41k we dont get wtc. Last year my agency kept me pretty but the end of last yr and this yr things have become alot more slower i have only gotten called twice in march for work. The agency says due to the current conditions things r pretty bad but hopefully they will get me something after spring break. I am still paying my childminder to reserve my son's place. Should i wait for my renewal or do i notify ctc but i have heard they make u pay it bk. I dont know wt to do?