Child Tax Credit - Do we tell them about this?

billykeats

Tehya wrote: »

OP I'm sorry to say this but if your wife is not planning on going back to work she'll actually be commiting benfit fraud by claiming JSA.

To claim Job Seeker's Allowance the claimant i.e. your wife has to sign an agreement with the JC+, she will have to jump through a hell of a lot of hoops to get the payment this can include job seeking activities similar to job club as well as having to apply for any jobs her advisor feels is suitable. If she doesn't apply (and they do check up) then she'll be sanctioned and could lose the claim.

My wife has not said she won't go back to work, she has said that she would go back to work if it was financially better for us. That is she doesn't want to be going back to work just to pay for childcare when she could do that herself.

billykeats

Yes the £225 is disposable income which my wife currently uses some to take baby swimming and on the odd occasion that we get to go out if we get a baby sitter. Plus then clothes for us and baby will come out of this too

lovinituk

If you have £225 a month disposable income then you are not that bad off at all!!

mildred1978

An SOA would help so that we don't have to piece bits of information that you've posted over time together.

billykeats wrote: »

Got £6000 in an ISA saved as a buffer. In the process of transferring utilities. We put money away for just about everything in a savings account for when we need it e.g. insurances, birthdays, xmas, car, water bill, tv licence. We hardly go out now that we have a baby. Live in area where public transport is not very reliable and I travel into the city so have 2 cars in the family for my wife to get around. Do everything I possibly can to save money or get money in the way of Cashback and everything that Martin Lewis advises us to do. Apart from maybe paying off our mortgage to reduce our bills. I check my accounts on a regular basis and have spreadsheets set up. Move savings accounts all the time. I would say I was pretty good with my financial decisions. Any more I could have done?

That's mostly good, but don't you live in Boreham Wood? It's prime commuter-ville and transport there is very good. How much are those cars costing you and how many miles do you do?

(This is how an SOA helps).

You've lost your wife's £25k per year salary (around £1600 net per month) and you're on £30k (around £1900 net per month). However, her redundancy payment would have been tax free, so that could have covered your existing lifestyle for 15 months.

Your mortgage went down £300 per month, and come December you'll be getting £290 per month JSA and £490 from your redundancy insurance. Those together are the equivalent of a £15.5k salary. You're then getting almost £90 per month child benefit, so in effect a total equivalent salary of £17.2k without the costs of having to go to work! That's without even touching the £25k redundancy.

What happened to your mortgage when you paid off the £25k? Has it reduced the balance or the term?

I could really do with an SOA - even a rough one - to advise properly.

mildred1978

billykeats wrote: »

Plus then clothes for us and baby will come out of this too

How many clothes could you possibly need?

mildred1978

To put the car thing into perspective, we have 3 cars. 1 costs around £3.5k to keep on the road each year, and we barely do 5000 miles in it. If I were looking to save money, that would be a prime target, but as it is it's worth keeping to me for the 5000 miles we do do in it. Do you see what I'm saying?

lovinituk

Tax Credits were supposed to be for people who 'needed' the extra money - not to top up people who were comfortable so I'm not surpised they are reducing the earning thresholds. Yes its always nice to have some extra cash no matter how well off you are but you don't 'need' tax credits if you have £225 monthly disposable income.

bestpud

Blimey! Wish we could save the child benefit and still have over £200 a month disposable income!

And we both work!!

jetplane

Usually it is only taxable income that is included for tax credit assessments so the payment protection payments are usually non taxable so won't be counted as income.

JSA is taxable so will be counted as income.

Yes the SMP was taken into account accordingly with the Tax Credits. Thanks thou

I don't want to patronise you but did YOU deduct the £100 a week before you gave the tax credit office your wifes gross income? They don't do this even if you tell them that she's on maternity pay. Many people do not realise that they have to give a figure of up to £3900 a year less.

billykeats

Jetplane the HMRC agent told me to deduct the £3600 from the total amount of money m wife would earn which is the amount of maternity pay would receive in in the year

mildred1978 you seem to know alot about me but I would love to live in Borehamwood purely for that reason that it is prime commuter area and could get rid off one of cars if not both. We actually live in Dunstable so need a car to get everyway.

Our SOA is as follows:

Mortgage £250 (reduced capital - interest only)
Life insurances £110
House insurance £20
Gas & Electric £63
Water £20
Homecall £30
Council Tax £151
Telephone & broadband £25
TV & Sky £35
Car Tax £22
Car Maintenance £55
Car Insurance £75
Groceries £400
Fuel £200
Birthdays & Xmas £100

Total £1556

My salary is £1780 as I get my pension taken before tax deducted

£224 left over and we have nothing in place to pay off our capital at the end of the term in 27 years just £6000 contingency in an ISA.

Any advice would be much appreciated