New rules for working tax???

Fiver29

sunnyone wrote: »

The £200 is IS/CB/CTC?

And that gives the full the amount of HB/CTB?

The thread is about WTC, so I presumed that was what the £200 was from.

BigAunty

sunnyone wrote: »

The £200 is IS/CB/CTC?

And that gives the full the amount of HB/CTB?

Yes, to be clear, the £200 per week benefits income I mention for a lone parent with 2 children is composed of IS/CB/CTC, not just tax credits, and was in response to a post by someone querying what a lady with 7 kids in her local area would get.

As HB is income based, assuming the lone parent is not in work, as is the case for nearly half, then they will receive the maximum eligible HB or LHA.

Whether or not a lone parent gets sufficient LHA to cover the cost of a private rental willl depend whether the rent is the same or less than the LHA rate they are eligible for. If they live in a property where the rent is more expensive than the LHA, there is a shortfall.

Other factors that reduce full LHA/HB is where there is a non-dependent in the property, such as an adult child, where they may have a modest deduction on the premise that the adult will contribute to the household expenses.

meemo38

It was me who mentioned the person with 7 kids...although dont know their full details as sometimes you see her husband and then dont see him for long periods, so not sure if they are on or off...obviously they are on and off to keep spitting babies out lol.
Anyway the non dependant adult thing is what we have...on my husbands wage we probably could get a little bit of housing benefit BUT we have 2 non dependants who are 'expected' to contribute, this isn't always the case with kids though....the guidelines for the reduction go on the amount they earn once they get to 18, , my daughter according to them should give me about £49 on her earnings, and son about £38, but we dont take that much as their wages are not always the same, we try to say 20% of their wage, but if they are off sick, or have their hours cut then its us who fall short as we dont take as much from them.
So i assume everyones benefits can vary drastically

miamoo

Meemo38 I know a family who also have 7 kids, he works 16hrs a week an NMW, I've just looked on the entitled to calculator and they rake in approx £37k a year!! I am absolutely gobsmacked.
I also know another family who have 3 children, the dad works 60-70 hr weeks and earns just over 42k a year, not entitled to any benefits other than child benefit, they would love more kids, but cant afford to.
The first family are having another baby, due next year, she said she needs to keep having babies to keep the tax credits, as her eldest is coming upto 18, and she doesnt know what they will do when eventually they all leave home

Edited to add that the 42k is BEFORE tax and deductions.

BigAunty

miamoo wrote: »

Meemo38 I know a family who also have 7 kids, he works 16hrs a week an NMW, I've just looked on the entitled to calculator and they rake in approx £37k a year!! I am absolutely gobsmacked.
..

So that's equivalent to a taxable salary of around 50k, then?

Isn't there a proposal to cap benefits to £500 per week? Excluding LHA/HB? When does this come in?

meemo38

WOW....well i have just roughly worked out our income
We are a family of 7
2 adults
2 non dependants
3 dependants...although come may one leaves college, the other leaves school and not sure what he is doing yet.
SO
husbands basic 20 hour week...due to health problems (but not entitled to any DLA ect) 8K
Child tax credits approx 8K at minute
WTC approx 3K
about £100 a year in countcil tax, so not worth mentioning lol

19K total

plus then whatever the 2 non dependant kids can give us board

When DH gets a few more hours we will be a bit better off...but come next year i am going to have to find work somehow to make up the loss of other 2 coming out of education, which we always knew would happen at some point:D

Charityworker

Isn't the child tax credit going up slightly though?

I'm in the same boat. I work 16 hours a week and husband was made redundant in october. He's applied for everything going but only had 1 interview so far and even that was only for a 4 week job. We live in the second highest town in the UK for unemployment.

If he doesn't get anything by april I will be going self employed as a make up artist (which is what I am trained as). I'll do childrens parties, work for photographers etc. I should be able to scrape 8 hours a week out of that. The only thinf thats putting me off about being self employed is the paperwork. Filling in tax returns and things like that are going to be extemely hard for me.

Charityworker

I was just thinking does that have to be 24 hours of paid work? I get paid for 16 hours but I work more like 25 as I work for a charity so I put in a lot more hours than I get paid for.

meemo38

I'm thinking of helping in a charity shop, so between now and next april i can at least gain some kind of experience, and have something to put in a CV, other than, being a mum for 20 years, its either that or end up in the distribution centre with my hubby and stepson lol

MissMoneypenny

BigAunty wrote: »

Boy, is this benefit board going into melt down next April, or what?!

Sooner than that maybe. Did I read that the first of the LHA reductions for existing claims, start in January?