Working Tax Credits - False overpayment

mildred1978

tamiami wrote: »

Part of my tax credit payment is for Child Tax Credits - which I believe everyone who has kids are entitled to anyway.

?

Not if you earn too much. Only child benefit is universal (at the moment).

Sixer

melly1980 wrote: »

there is no moaning I am stating a fact.

If a self employed person can no longer earn this low amount of money they will end up claiming more money from the tax payer. I had this discussion regarding my wifes childminding business, if she is stopped from doing it....great. Thats a few K less income and our tax credits increased by 39% of that few K.

We end up worse off as we have lost the differential between wages and the taperd amount and the government ends up worse off by paying a higher amount of tax credits. Really clever that is.

Melly, I was thinking about your wife in another discussion about this on here.

It won't matter how many hours she works (or shares childcare between her own and paid-for children for how many hours) as far as UC is concerned. Provided you and she earn the threshold money, you'll be eligible. And you earn a good wage, so presumably you will make the £425 per week on your own.

As for the single parent childminder, I am sure they will remain an exception as they do now - in the same way HMRC recognises that you might have a child for 8 hours a day, but if you also have one of your own for the same 8 hours, that does not really constitute 8 hours of paid work - the childcare hours are shared.

melly1980

Sixer wrote: »

Melly, I was thinking about your wife in another discussion about this on here.

It won't matter how many hours she works (or shares childcare between her own and paid-for children for how many hours) as far as UC is concerned. Provided you and she earn the threshold money, you'll be eligible. And you earn a good wage, so presumably you will make the £425 per week on your own.

As for the single parent childminder, I am sure they will remain an exception as they do now - in the same way HMRC recognises that you might have a child for 8 hours a day, but if you also have one of your own for the same 8 hours, that does not really constitute 8 hours of paid work - the childcare hours are shared.

Oh, I appreciate that but there is this attitude that is prevalent on here that we should just randomly take money off people even if it costs the tax payer more. There is very little thought going into it.

Discount my example and use another one. This person only earning 500 quid will not earn anything at all if the tax credits are ripped from under him. All that happens then is that he could (circumstances dependent) be a bigger burden on the tax payer.