Child & Working Tax Credits

Soldierearth54

I was hoping for some advice...

My partner is due in April with our 1st baby and we are looking at a new budget. We would like to know if we are eligible for the above and at what rate.

The info on the HMRC & Directgov websites are confusing & contradictory. Particularly as it does not even allow us to make a speculative calculation for the next tax year.

Can anyone with previous experience of this please share their thoughts?

Please note: we both work full time, teacher and care manager - I will continue to work whilst my partner will be on maternity leave.

Thanks,

kingfisherblue

you will almost certainly be above the threshold for WTC - the cut off is about £17-18k. Child tax credit is tapered, depending on income. I've no idea how to work it out, althoguht here are more knowledgeable posters who know the system, but they will need information such as income.

HappyMJ

mickp67 wrote: »

I was hoping for some advice...

My partner is due in April with our 1st baby and we are looking at a new budget. We would like to know if we are eligible for the above and at what rate.

The info on the HMRC & Directgov websites are confusing & contradictory. Particularly as it does not even allow us to make a speculative calculation for the next tax year.

Can anyone with previous experience of this please share their thoughts?

Please note: we both work full time, teacher and care manager - I will continue to work whilst my partner will be on maternity leave.

Thanks,

What did you earn this tax year? Will it drop?

You need to add the components together £1,920 WTC Basic Element plus £1,950 Couples Element plus £545 Family Element plus £2,555 Child Element (and the £790 30 hour element if it applies). That's a start. Total £6,975. That figure is reduced by 41 pence in the pound that you earn over £6,420 after tax and NI has been deducted. Or you can look it up here for an estimate.... http://www.direct.gov.uk/en/MoneyTaxAndBenefits/TaxCredits/peoplewhohelpothers/Entitlementtablesfortaxcredits/Youworkandalsohavechildren/DG_174787

zagfles

HappyMJ wrote: »

What did you earn this tax year? Will it drop?

You need to add the components together £1,920 WTC Basic Element plus £1,950 Couples Element plus £545 Family Element plus £2,555 Child Element (and the £790 30 hour element if it applies). That's a start. Total £6,975. That figure is reduced by 41 pence in the pound that you earn over £6,420 after tax and NI has been deducted. Or you can look it up here for an estimate.... http://www.direct.gov.uk/en/MoneyTaxAndBenefits/TaxCredits/peoplewhohelpothers/Entitlementtablesfortaxcredits/Youworkandalsohavechildren/DG_174787

Before tax & NI, not after. Tax credits use gross income.

The child element is a bit higher next year - £2690

http://www.hmrc.gov.uk/rates/taxcredits.htm

Soldierearth54

HappyMJ wrote: »

What did you earn this tax year? Will it drop?

You need to add the components together £1,920 WTC Basic Element plus £1,950 Couples Element plus £545 Family Element plus £2,555 Child Element (and the £790 30 hour element if it applies). That's a start. Total £6,975. That figure is reduced by 41 pence in the pound that you earn over £6,420 after tax and NI has been deducted. Or you can look it up here for an estimate.... http://www.direct.gov.uk/en/MoneyTaxAndBenefits/TaxCredits/peoplewhohelpothers/Entitlementtablesfortaxcredits/Youworkandalsohavechildren/DG_174787

This tax year approx joint earnings would be £50,000 before tax. It will drop to approx £25,000 before tax in the next year.

I would love to say what you wrote above made sense to me but to a novice it's all very confusing! I just assumed there would be a financial cut off and if you earned above or below this would define what you received.

Thanks anyway

ikati5

https://www.turn2us.entitledto.co.uk/ This is a great site, you can mess about with the figures to get an idea of this year, next year etc

zagfles

mickp67 wrote: »

This tax year approx joint earnings would be £50,000 before tax. It will drop to approx £25,000 before tax in the next year.

I would love to say what you wrote above made sense to me but to a novice it's all very confusing! I just assumed there would be a financial cut off and if you earned above or below this would define what you received.

Thanks anyway

On the above figures you probably won't get any tax credits.Though you can deduct £100pw of maternity & paternity pay if you've included that above, if it comes to under about £23200 you might get some. You can also deduct pension conts, gift aid etc.

Assuming no disabilities etc.