£42000 income new limit for tax credits?

milliebear00001

kimmy112 wrote: »

to be honest the lucky ones that earn that amount of money do not need tax credits and child benefit.

Tell that to George Osborne.

zagfles

KimYeovil wrote: »

Do you seriously believe couples with an income of £83K should receive tax credits? :rotfl:

Yes, and some do. For instance a couple both working with 4 kids, two of whom are disabled, and 300pw childcare costs. They'd get tax credits on £83k. Loads of other combinations, eg 6 kids with no disabilites.

hcb42

£83K and it is still possible to get tax credits by having six kids..gulp.

I dont know whether to reach for my voting form or the telephone number of the IVF clinic:eek:

brummiebabe

We've not had any letter as yet, so could someone confirm whether the household income limit is is £42000 or £40000? The reason I ask is that, with my mileage etc our combined income will go over £40000 by a few hundred pounds. So will I lose CTC? We have 3 children one of whom we pay Childcare for. I intend to phone to advise that 2010/2011 income will be slightly higher than estimated......but am unsure whether this will mean we lose it automatically.

Most of the websites say the limit is £40000, but it sounds like the HMRC is saying it's £42000?

kst101

I think that from £40k the taper rate of 41p of ctc lost for each £1 of income. So if you were getting just the family amount of £545 then it would go at about £41,329. But that is just for the basic amount - any combination of childcare, disabled element and probably other things would impact.

Spendless

Brummiebabe - my letter says

....you will not receive any payments from April 2011 as the income level for tax credits of most people is now £42,000......

FBaby

kimmy112 wrote: »

to be honest the lucky ones that earn that amount of money do not need tax credits and child benefit.

Always makes me smile when the mention of a high income becomes automatically associated with the adjective 'lucky'!

I was a single mum of two babies with very little help from family and father of the children, continued to work full-time, studied week-ends, went through two restructurations, had to reapply for my job twice to avoid redundancies in 4 years. My partner worked 12 hours days for years, not as part of his contract, but as 'extra' to make a good impression and climb up the ladder. His work came before anything else. We are two very lucky !!!!!!s (paying high tax rates)!!!

I do agree though that we don't need tax credits.

brummiebabe

Thanks for the advice everyone it sounds like we may not automatically lose it then....it's such a complicated system though, designed to confuse you I think!!

Will give them a call to update our estimated income ....don't want to leave it too long in case we get overpaid!!!!

smeli

I am confused by all this too. I have a nearly 6mth old baby and am currently on maternity leave, due back at work in October.
We got child tax credits over the last 6 months but got the same letter the OP talks about, but surely HMRC would realise that by me being on mat leave my income is much reduced from what it was in 2009/10 which was what they asked for in my original application?
My husband's income is now £30k p.a. Mine is just SMP until I go back to work. Are we entitled to claim for the 6 months where we are definitely not earning more than £42k pa or are we supposed to estimate what will happen for the whole year?
I am not sure what hours I will work when I go back (hoping to work part time) or even if I will still have a job (it is in the NHS and there is a lot of worry about job security at the moment). So if I estimated we would earn over £42k for the year but then say in November I lose my job and earn nothing until April 2012 does that mean we will have lost out for the whole year because we can't backdate the claim?
Also don't even know / understand how childcare costs / vouchers fit into all this.
I would ring them up and ask but a) I'm hard of hearing b) our telephone line is broke at the moment and c) they never answer the phone anyway.

zagfles

smeli wrote: »

I am confused by all this too. I have a nearly 6mth old baby and am currently on maternity leave, due back at work in October.
We got child tax credits over the last 6 months but got the same letter the OP talks about, but surely HMRC would realise that by me being on mat leave my income is much reduced from what it was in 2009/10 which was what they asked for in my original application?
My husband's income is now £30k p.a. Mine is just SMP until I go back to work. Are we entitled to claim for the 6 months where we are definitely not earning more than £42k pa or are we supposed to estimate what will happen for the whole year?
I am not sure what hours I will work when I go back (hoping to work part time) or even if I will still have a job (it is in the NHS and there is a lot of worry about job security at the moment). So if I estimated we would earn over £42k for the year but then say in November I lose my job and earn nothing until April 2012 does that mean we will have lost out for the whole year because we can't backdate the claim?
Also don't even know / understand how childcare costs / vouchers fit into all this.
I would ring them up and ask but a) I'm hard of hearing b) our telephone line is broke at the moment and c) they never answer the phone anyway.

It works on total annual income over the tax year, search this forum for "estimate" and "disregard".