Working Tax Credits Calculator Help

allen35

-MRS_T- wrote: »

That would be great if you wouldnt mind. The reason I am asking you see is that I am starting a new job next month due to being made redundant.

I will be going from working part time to working full time and I am trying to work out how much if anything I will get in child tax credit or working tax credit as I will need to put my son into nursery alot more, but not sure I can afford to iykwim.

Does it go on the p60 that me and hubby will get in the next few weeks or will it go on what my new wage will be. Im confused

Hi Mrs T

You may be entitled with 70% of the childcare costs too if you don't already get these, you say your income is going from £10,000 to a possible £17,500, does this include your partners income.

If you tell us how many children, childcare costs, any disabilities and joint income i'd be able to do an updated approx' tax credit award for next year so you'd know where you stand.

Kalia

From Aril the amount of tax credits awarded changes and as far as I am aware the calculator is still for this tax year so will be wrong. It sounds like allen35 knows how to work out next year's awards though so I'd take him up on the offer

The tax credit form that you will get in the next few months will ask about the income from this tax year to ensure you have received the right amount. You are supposed to call them if you have a change in circumstances so you would call them to let them know what your expected household income will be next tax year and they will amend your payments accordingly.

-MRS_T-

allen35 wrote: »

Hi Mrs T

You may be entitled with 70% of the childcare costs too if you don't already get these, you say your income is going from £10,000 to a possible £17,500, does this include your partners income.

If you tell us how many children, childcare costs, any disabilities and joint income i'd be able to do an updated approx' tax credit award for next year so you'd know where you stand.

Thank you for your kind offer that would be very helpfull.

I have one child none of us have any disabilities our joint income for last year will be
Me 10k Hubby 23k

My new salary from april this year will be 15000 for 3 months then after 6 months will go to 17500

My hubbys salary from apr 11-12 will be much lower as he has worked every hour god sends this year to get that. It will be more in the region of 20k

I dont have roster for new job yet but think i will have to put son in nursery 3 full days at least which would cost £280 per month. Thats me already deducting whst the government pay for his free preschool child place.

I hope this all makes sense.

Thanks

janlea6

I thought final figure was the amount that annually you would get!

I only get 25 a week but my final figure was 125

best you ring tax credits helpline to get the best info

good luck

allen35

Hi Mrs T

CTC
family element £545
child element x1 £2555

WTC
Basic element £1920
Couple element £1950
30 hour element £790
Childcare element 70% of £3,360 =£2,352

http://www.hmrc.gov.uk/rates/taxcredits.htm


Maximum Tax Credits= £10,112

Income £33,000 (2010/11 income used as lower than estimated income for 2011/12) - £6,420 (first threshold) = £26,580
£26,580 x 41% = £10,897.80

MTC £10,112 - £10,897.80 = £0

Therefore you will be entitled to the family element of £545 pa (£10.50pw)

Are you sure your childcare costs total £64.62pw (£280pcm) for 3 full days childminding.

Unfortunately your joint income exceeds your maximum tax credit allowance by £785.80 for the upcoming tax year.

If your childcare costs increase by at least £16 per week above what you have stated, for example you decide your child needs 4-5 days care or you have underestimated the daily cost, inform HMRC of your increased costs and you should then start receiving additional help.

-MRS_T-

allen35 wrote: »

Hi Mrs T

CTC
family element £545
child element x1 £2555

WTC
Basic element £1920
Couple element £1950
30 hour element £790
Childcare element 70% of £3,360 =£2,352

http://www.hmrc.gov.uk/rates/taxcredits.htm


Maximum Tax Credits= £10,112

Income £33,000 (2010/11 income used as lower than estimated income for 2011/12) - £6,420 (first threshold) = £26,580
£26,580 x 41% = £10,897.80

MTC £10,112 - £10,897.80 = £0

Therefore you will be entitled to the family element of £545 pa (£10.50pw)

Are you sure your childcare costs total £64.62pw (£280pcm) for 3 full days childminding.

Unfortunately your joint income exceeds your maximum tax credit allowance by £785.80 for the upcoming tax year.

If your childcare costs increase by at least £16 per week above what you have stated, for example you decide your child needs 4-5 days care or you have underestimated the daily cost, inform HMRC of your increased costs and you should then start receiving additional help.

Thank you for taking the time to do that for me that is most helpfull. I still havent got a clue what half the figures are etc but I really am dreadfull with numbers.

I was going to put my son in 3 full days a week as I dont think I can afford any more than that and am trying to get parents etc to help.

The childcare for 3 full days is £16 per session x6per week x 4 for the monthly cost

£384 is what it would cost but my son gets the free place for pre schoolers in the private nursery I send him which starts in April.

So the nursery have told me that the government give them £1463 per year so she deducts that off the monthly cost which would bring it down to the £280 per month.

So if I had to put him in an extra session which is £16 how much do you think I would get then, as It would be better for me if I did not have to rely on other people if I could afford to put him in nursery.

Thanks

allen35

-MRS_T- wrote: »

Thank you for taking the time to do that for me that is most helpfull. I still havent got a clue what half the figures are etc but I really am dreadfull with numbers.

The childcare for 3 full days is £16 per session x6per week x 4 for the monthly cost

£384 is what it would cost but my son gets the free place for pre schoolers in the private nursery I send him which starts in April.

So the nursery have told me that the government give them £1463 per year so she deducts that off the monthly cost which would bring it down to the £280 per month.

So if I had to put him in an extra session which is £16 how much do you think I would get then, as It would be better for me if I did not have to rely on other people if I could afford to put him in nursery.

Thanks

Firstly be aware that 4 weeks is short of a month, i don't want you underestimating how much it will cost:

For 4 days childcare at the rate of £16 per session works out at:

£16 x 8 = £128 per week

£128 x 52 weeks = £6,656 per year

£6,656 - £1,463 (Gov't bursary) = £5,193

£5,193 divide by 12 =£432.75 per month. (Your contribution)

Or £5,193 divide by 52 = £99.87 per week.

Does this help, give us a minute to calculate....

-MRS_T-

allen35 wrote: »

Firstly be aware that 4 weeks is short of a month, i don't want you underestimating how much it will cost:

For 4 days childcare at the rate of £16 per session works out at:

£16 x 8 = £128 per week

£128 x 52 weeks = £6,656 per year

£6,656 - £1,463 (Gov't bursary) = £5,193

£5,193 divide by 12 =£432.75 per month. (Your contribution)

Or £5,193 divide by 52 = £99.87 per week.

Does this help, give us a minute to calculate....

Oh I see I hadnt thought of doing it like that I was just working out 4 weeks in every month.

That makes perfect sense the way you have done it.

I am unsure what you mean by my maximum tax credit allowance. You say our salaries have exceeded this by £785.80

If our salary was less than £33k by £785.80 would that mean I would get more tax credits as my hubby did work a lot lot of overtime to get this wage.

Thanks

allen35

CTC
family element £545
child element x1 £2555

WTC
Basic element £1920
Couple element £1950
30 hour element £790
Childcare element 70% of £5,193 =£3,635.10

http://www.hmrc.gov.uk/rates/taxcredits.htm


Maximum Tax Credits= £11,395.10

Income £33,000 (2010/11 income used as lower than estimated income for 2011/12) - £6,420 (first threshold) = £26,580
£26,580 x 41% = £10,897.80

MTC £11,395.10 - £10,897.80 = £497.30

If it was based on todays calculation sheet you would receive £23.99 per week help but because from 2011/12 the gov't are reducing help to 70% from 80% and increasing the reduction of income from 39% to 41% therefore you are still below the £545 threshold but now only just, in fact by £1 per week (see above)

Do apologise and really sorry you would't receive extra help. Therefore you are best sticking to original decision i.m afraid.

allen35

-MRS_T- wrote: »

Oh I see I hadnt thought of doing it like that I was just working out 4 weeks in every month.

That makes perfect sense the way you have done it.

1) I am unsure what you mean by my maximum tax credit allowance.

2) You say our salaries have exceeded this by £785.80

If our salary was less than £33k by £785.80 would that mean I would get more tax credits as my hubby did work a lot lot of overtime to get this wage.

Thanks

1) This is adding up all the premiums that apply to you on the link i posted which added up gives the maximum amount of tax credits your family may be entitled to.

2) This amount is your salary minus the deduction of 41% so it doesn't work by reducing salary by £785.80.

It is very confusing i must admit.

I helped a couple with 2 children with a joint income of £40,000 paying 5 days childcare of £300 pw (£15 per session) and they receive £175 per week in tax credits.