Working Tax Credits and Savings

dazleeds1978

Hello, my partner and I currently waiting for child in the way. Can please someone give an advice WTC and Child Tax Credit, but are unsure how much we are currently allowed to have in a savings account in order for it not to affect our benefits. It will be only me working and getting 35,000 a year and i have 25,000 pound in savings to move to a bigger house. I think the government changing the system to universal credit system. and with this system will be in place.

Thanks very much. Any advice appreciated.

lauzellen

On that wage you wouldn't get any WTC.. you may get a small amount of CTC. It is the interest on savings that is taken into account for tax credits (anything over £300 interest) not the actual amount of savings.

You will get the child benefit of ~£20 a week.

dazleeds1978

Hi lauzellen,

Thanks for quick reply. what is CTC?.

I have checked taxcredits.hmrc.gov.uk/Qualify/DIQHousehold.aspx
this link and it says i can get £144 for working tax credit?

Thanks,
Daz

lauzellen

CTC is child tax credits and that £144 will be for that not the working tax credits... thresholds for working tax credit are much lower than those for child tax credit... it has worked out if you had baby born now you would get £144 between now and april - £21 a week. From april some things are changing so this may go down.

Caz3121

dazleeds1978 wrote: »

Hi lauzellen,

Thanks for quick reply. what is CTC?.

I have checked taxcredits.hmrc.gov.uk/Qualify/DIQHousehold.aspx
this link and it says i can get £144 for working tax credit?

Thanks,
Daz

If you look at the results page it is likely to say
Child Tax Credits £144
Working Tax Credits £0
total £144
This is the amount your household may be entitled to from 18/02/2011 until 05/04/2011.

this is the total not a weekly amount...the baby element is disappearing so it is likely to be around £10 per week child tax credits from April and £20.30 per week child benefit

indigogirl_3

But the new Universal Credit means that you will get nothing if you have savings over 16,000.

I'm not sure when this takes effect

http://blogs.ft.com/westminster/2011/02/the-ids-rule-that-punishes-savers/

henrie

Hi Daz

Unfortunately the more you earn the less ctc you will get. Your savings dont make any difference I dont think, I have more than you do in your savings and I still get the same. £144 a month is not too bad really and its tax free of course. You might have to forget holidays etc for the moment though! You could always phone the helpline for advice 0845 300 3900 (call at weekends should be cheaper than during the week). Hope this has helped!
regards from Henrie

zagfles

indigogirl wrote: »

But the new Universal Credit means that you will get nothing if you have savings over 16,000.

I'm not sure when this takes effect

http://blogs.ft.com/westminster/2011/02/the-ids-rule-that-punishes-savers/

2014-2017 for those on tax credits now. There is transitional protection which says nobody will be worse off in cash terms, but how long this lasts for and what happens if circumstances change (eg new baby, income increase) is unclear.

AimeesMum_2

henrie wrote: »

Hi Daz

Unfortunately the more you earn the less ctc you will get. Your savings dont make any difference I dont think, I have more than you do in your savings and I still get the same. £144 a month is not too bad really and its tax free of course. You might have to forget holidays etc for the moment though! You could always phone the helpline for advice 0845 300 3900 (call at weekends should be cheaper than during the week). Hope this has helped!
regards from Henrie

Just wanted to confirm that it's £144 for the remainder of the tax year (up until 5th April 2011) not per month xx