WFTC/Tax Credits and child maintenance under new system

michelle1506

Hello,

Does anyone know whether or not child maintenance will be taken into account under the new system, for the purposes of working out WFTC/Tax Credits?

I am curious to know as a third party heard of, claims WFTC and Tax Credits, and takes £230 off their ex every week! £180 goes to the child minder!

All sounds a bit wrong to me, after all why claim WFTC and then get the full amount for the child care off the ex! Think this loophole needs closing myself...

AnxiousMum

Maybe it's simply the timing of when the ex pays child maintenance, that it coincides when the childminder is due to be paid. I think you'll find that the ex is paying child support - and that can be used any way by the residential parent as they see fit - hopefully on the children's needs including a portion of the rent, food, transport etc.
Just like family benefit/child benefit - it can be used for anything - only a minority of families are able to put it aside strictly for the kids futures or current activities.

michelle1506

Thanks for the reply. But she is claiming £230 per week from the ex!! I know that out of this money £180 is paid to the child minder and in addition she is claiming WFTC which covers 70% of the child minder fees. In other words she is getting the child care fees twice (or most of them). Sorry, but I think that it's too much to expect £230 every week from someone who earns only 40k and furthermore that this maintenance is not considered when applying for Tax Credits or WFTC.

Some people might not agree but it's what I think..

sealady

michelle1506 wrote: »

Thanks for the reply. But she is claiming £230 per week from the ex!! I know that out of this money £180 is paid to the child minder and in addition she is claiming WFTC which covers 70% of the child minder fees. In other words she is getting the child care fees twice (or most of them). Sorry, but I think that it's too much to expect £230 every week from someone who earns only 40k and furthermore that this maintenance is not considered when applying for Tax Credits or WFTC.

Some people might not agree but it's what I think..

So who is paying for this child living expenses. Does it matter how the money is spent and out of what "pot" child care fees are paid. You don't just get WFTC for children when they needing child care. The child care element of WFTC is to encourage people to go back to work.

michelle1506

sealady wrote: »

So who is paying for this child living expenses. Does it matter how the money is spent and out of what "pot" child care fees are paid. You don't just get WFTC for children when they needing child care. The child care element of WFTC is to encourage people to go back to work.

But why does not both parties pay a contribution to the child care fees? Why only one? Sorry, but I stand by my earlier comments, feel sorry for the ex - think she had better hope that he doesn't find himself a new girlfriend

FBaby

michelle1506 wrote: »

and takes £230 off their ex every week! £180 goes to the child minder!

All sounds a bit wrong to me, after all why claim WFTC and then get the full amount for the child care off the ex! Think this loophole needs closing myself...

Firstly, she does TAKE anything from her ex, he is contributing towards her children. Secondly, that money is not purely for childcare, but overall care. The money she gets from WTC IS for childcare.

The loophole is not about her getting money from her ex but about WTC not taking that maintenance as income to assess entitlement. It means that someone getting £500 in maintenance for one child is getting the same amount than a PWC getting no maintenance. Maintenance IS income for the children and means tax payers shouldn't contribute so much CHILD tax credits for that person. My view though

FBaby

michelle1506 wrote: »

think she had better hope that he doesn't find himself a new girlfriend

That will make no difference, he will still have to pay. Just realised you mean he contributes over £1000 a month??? He must have a very good job indeed! It is very wrong that such a person can claim child tax credits in addition to this and yep, I would certainly like to see this change.

michelle1506

Thanks, you have summed up my thoughts totally! Of course he should have to pay for his child but £1000+ a month???? She should not be able to claim tax credits I don't think! :mad:

FBaby wrote: »

That will make no difference, he will still have to pay. Just realised you mean he contributes over £1000 a month??? He must have a very good job indeed! It is very wrong that such a person can claim child tax credits in addition to this and yep, I would certainly like to see this change.

Ziggazee

OP.....it really isn't your business.....you don't know all the ins and outs, only what you assume to be the case. Even if the ex finds himself a new girlfriend why would this change things?? Unless of course you are the "new girlfriend" and are hell bent on causing trouble ;-)

michelle1506

Ziggazee wrote: »

OP.....it really isn't your business.....you don't know all the ins and outs, only what you assume to be the case. Even if the ex finds himself a new girlfriend why would this change things?? Unless of course you are the "new girlfriend" and are hell bent on causing trouble ;-)

No I am not the new girlfriend! Not that this is any of YOUR business! I am not as you put it 'hell bent on causing trouble' I wondered if the present system was changing under the new universal credits when it comes in. There was no need to be quite so touchy! :mad:

michelle1506

Also if I was the 'new girlfriend' then surely I would have just said I was!! God what an imagination!