New tax credit rules help

sweetersong

Knowing the limits etc for next year, can anyone help work out how much our tax credits will go down by

Our daughter (currently 2 months old) starts nursery in april, if she was going now we would have an annual award (full yr) of £5234, of which £2383 is the childcare element of WTC and £2851 is CTC

This is based on a joint income of £26,390 and nursery fees of £133.50

Can anyone work out what this will be reduced to come april, so I can budget accordingly

Thankyou in advance as I may not be able to check back until later

(I havent included the baby element in the above award as already know thats going from april)

lauzellen

Based on an income of 26390 the figures would be:

1920 + 1950 + 790 + 545 + 2555 + (133.50*52*0.7) = 11891.40

Reduction due to income = (26390 - 6420) * 0.41 = 8187.70

Yr 10/11 award = 3703.70 = £71.23pw


But you should be able to subtract £100 per week you are on maternity to a maximum of 39 weeks. Which could increase your award to 5302.1 for the yr so £101.98pw

sweetersong

Thanks for that.

I'm not getting SMP, my part of the income was my earnt income for the first couple of months of the current tax yr and then JSA/ESA.

Income will be lower next tax yr, but if I work out the minimum we will get, at least I know we will be ok