Can someone please work out Tax Credits for Next year

lauzellen

lol Thanks and you're welcome

zagfles

bells123 wrote: »

Thanks. For that
I'm also trying to work out if I'm better off
This way. Or. If my husband. Who will be
On the higher rate tax in April should take
Childcare voucher so then he will then be under
The higher tax band. And then in 2013 still
Be able to claim child benefit
Or. Can I claim both. 243 in voucher and the rest
Tax credits. Or won't I get tax credits because I get
Vouchers

It's so confusing !!!!!

Your husband won't be on higher rate tax on £36k. The higher rate threshold is £35k over the personal allowance ie £42,475.

bells123

so by being on 36k he wont be on the higher tax band are you sure
so we will still get child benefit ? so am i better off on tax credits or vouchers

so confusing !!!!

hmrc calculator says ill be worse of with vouchers but if i only claim 243 and then claim the extra in tax credits will i be better off or not

zagfles

You'll almost certanly be better off with tax credits. See also http://www.hmrc.gov.uk/calcs/ccin.htm

bells123

someone told me there was a upper threshold of 41290 joint income to get the chilcare element
is this right
will i definetly get tax credits on our joint income?
im so confused?

zagfles

lauzellen wrote: »

It may be closer to £50pw bells as forgot about the 2nd withdrawal rate being taken from 50K to 40K as of april

That won't make any difference in this case as the second withdrawal threshold (for the family element) doesn't apply if the rest of tax credits haven't already been tapered to zero by then. In this case the family element only starts being tapered when the rest of tax credits have been tapered to zero.

See http://www.hmrc.gov.uk/manuals/tctmanual/TCTM07047.htm

bells123

so does that mean ill quailfy for tax credits ?

thanks for your help to

zagfles

bells123 wrote: »

someone told me there was a upper threshold of 41290 joint income to get the chilcare element
is this right
will i definetly get tax credits on our joint income?
im so confused?

No this is not right. Lauzellen's calculation is correct, ie 56pw if you don't take vouchers.

The figure you quote is where entitlement to tax credits will end for the majority of families. But with 3 kids and childcare costs you will still get tax credits at your higher income.

lauzellen

zagfles wrote: »

That won't make any difference in this case as the second withdrawal threshold (for the family element) doesn't apply if the rest of tax credits haven't already been tapered to zero by then. In this case the family element only starts being tapered when the rest of tax credits have been tapered to zero.

See http://www.hmrc.gov.uk/manuals/tctmanual/TCTM07047.htm

Ahhhh ok thanks

bells123

thanks so much for all you help