Tax credit query for 2011

TotallyBroke

Hi.... I currently get TC and Childcare element but no WTC as it is reduced due to earnings.

I have received a payrise and my childminder is now putting her hourly rate up. I'm a bit confused with new TC rules and wonder if someone can help me work out a rough award for me.
HMRC TC site only shows award from now until end of march.

Wage as of 1st April will be £ 23,855pa childcare will cost £200pw. I am a single parent of 1 child and work 35 hours pw.

Thanks if you can help me work out how much help I would get in childcare.

zagfles

TotallyBroke wrote: »

Hi.... I currently get TC and Childcare element but no WTC as it is reduced due to earnings.

I have received a payrise and my childminder is now putting her hourly rate up. I'm a bit confused with new TC rules and wonder if someone can help me work out a rough award for me.
HMRC TC site only shows award from now until end of march.

Wage as of 1st April will be £ 23,855pa childcare will cost £200pw. I am a single parent of 1 child and work 35 hours pw.

Thanks if you can help me work out how much help I would get in childcare.

Rates are here: http://www.hmrc.gov.uk/rates/taxcredits.htm

Childcare % is going down to 70% so you'll probably be worse off next year. Also max eligible childcare for 1 child is 175. CTC child element is going up but the withdrawal rate is too so you'll lose here too with just one child.

Assuming the 200 is every week, your WTC (inc childcare) plus CTC should be:

1920+1950+790+175*0.7*52 +2555+545 = 14130

Reduced by 41% of income over 6420: (23855-6420)*0.41 = 7148

Making 6982 ie 134pw.

TotallyBroke

Thank you very much for that.... based on those figures I will get slightly more every 4 weeks than I get now. So will help with the increase in childcare costs I won't have to find to much of the extra myself.

At present I pay for 1 week of childcare out of 4 myself, combined TCs and CB pay for the other 3. So now TCs and CB will pay for approx 2.5 weeks and I'll have to pay for approx 1.5 so I think I can manage that