Tax Credit assistance

mutty_hc

Hi all,

I'm trying to work out whether we would be better off if my wife stayed at home with our child or return to work and use a child minder.

I've run the numbers a few times on turn2us and they don't add up.

Our monthly outlay on childcare would be approx £682 - yet with TC involved it's saying they would pay us £760 every 4 weeks.

This takes into account the extra working tax credit we would recieve, even though our overall gross earnings per year would be £36500.

I then ran the same numbers through the HMI website and it stated that between now (18/9) and next April we would recieve 2000, and no working tax credits, meaning it would equate roughly to 315 every 4 weeks.

Is turn2us accurate as I just can't seem to get these numbers straight?

I mean based on our last years income, we don't receive much working tax credit at all, less than now. I don't see why it would go up?

Shiloe

How many children do you have ?

mutty_hc

Shiloe wrote: »

How many children do you have ?

2 children

merlin68

You don't get WTC on an income of £36500. Only basic ctc of £10 a week per child.

zagfles

merlin68 wrote: »

You don't get WTC on an income of £36500. Only basic ctc of £10 a week per child.

This is wrong - with your childcare costs you'll get far more than the basic element of CTC. I make it £3711 pa based on an income of £36500.

But it could be far more this year if last year's earnings were less, because of the disregard.

Turn2us usually gives accurate answers if you put the right info in.

merlin68

He said WTC you don not get WTC on that income . Sorry but you don't.
'This takes into account the extra working tax credit we would recieve, even though our overall gross earnings per year would be £36500.'

zagfles

merlin68 wrote: »

He said WTC you don not get WTC on that income . Sorry but you don't.
'This takes into account the extra working tax credit we would recieve, even though our overall gross earnings per year would be £36500.'

Your second sentence

Only basic ctc of £10 a week per child

was what I was referring to as wrong. Sorry but it was;).

As for WTC, with the OPs childcare costs, you could get some on £36500, if last year's income was under £30k.