Tax credits 2011/2011 - Please help

dfwb

Could some one please help me work out our entitlement for 2011/2012 please - i am totally clueless.

Me - £17,000
Husband - £16,00

2 children (1 & 3)
Childcare costs £400 pw

Thanks in advance

dfwb

sorry, forgot to say - i work 42.5 hours and husband works 40 hours

dfwb

Trying to figure it not sure if i have it righ?

10315 entitlement
33000 income

33000 - 6420 = 26580
26580 x 0.41 = 10897.80
10315 - 10897.80 = -582.80

????

I think i have just complecated it even more

dfwb

Anyone?? ? ? ? ??

laisbojar83

Hi dfwb,

I believe you forgot to enter your childcare element.
So it should be 10315 + 400*52*0.70 = 24875

I hope it helps xx

laisbojar83

If my calculations are correct you should be getting around 268.00 per week.

dfwb

Is it based on this years earnings or last years as i was on maternity last year?

laisbojar83

dfwb wrote: »

Is it based on this years earnings or last years as i was on maternity last year?

Your 2011/2012 award is based on your 2010/2011 income but you have to give them an estimate for the current year anyway (april 2011/2012) and it is most likely you are going to earn above the new disregard threshold of £10.000 per annum.

I suggest you give them an estimate based on what you think your earnings will be from april 2011/2012, avoiding an overpayment in the future.

I hope it helps a bit.

xx
L.

zagfles

laisbojar83 wrote: »

Hi dfwb,

I believe you forgot to enter your childcare element.
So it should be 10315 + 400*52*0.70 = 24875

I hope it helps xx

Max eligible childcare is 300 so it'd be 10315 + 300*52*0.7 = 21235.

Then reduced by income. If your 2010/11 income is 33k, and your 2011/12 income is between 33k and 43k, that'll be 10897.80 as you worked out, so makes 10337.20 ie about 199pw.

dfwb

Gosh! That doesnt even cover my childcre by a mile! Perhaps i should consider less hours?

zagfles

dfwb wrote: »

Gosh! That doesnt even cover my childcre by a mile! Perhaps i should consider less hours?

Yes. As an example if you did 3/4 the hours you do now for 3/4 the pay and your childcare went down to 3/4 of what it is now ie £300 pw you'd be much better off.

£4000 drop in gross salary would mean £800 less tax, £480 less NI, and £1640 more in tax credits, so it'd only cost you £1080.

But you'd save £5200 in childcare costs, so you'd be over £4000 better off!

(This assume you still both work at least 16 hours pw so are still eliglible for childcare help).

As your childcare is more than your salary you might even be better off short term reducing your hours even more or even giving up work completely - but obviously this depends how easy you think you'd find it to get back to work when your kids go to school.