The Forum is currently experiencing technical issues which the team are working to resolve. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Tax credits advice

Hi
I wondered if anyone could offer advice?
My husband and I currently earn approx £38,000 between us.
However my husband has just been told he will have to take a 30percent payout which will leave us just above £30,000 per year.
Am I right in thinking that the family element of tax credit which we receive (just over £40 per month) will end this year?ive looked on the hmrc website and it just says new information with be available then, but I'm sure I've read somewhere that the income threshold goes to 30k.
Sorry for long winded post. I've done my sums and what we are facing is a bit scary. We by no means live extravagantly, we haven't been on holiday for 4 year treats, and my husbands car is held together by rust. Every penny we have us spent on debts from my 2 recent spells of maternity leave and a recent house move.
Thanks in advance.

Comments

  • zagfles
    zagfles Posts: 21,381 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Chutzpah Haggler
    There is no fixed upper threshold for tax credits at all, and nor will there be next year. Don't believe the bull**** you read in the papers.

    Whether you'll get any or not depends on how many children you have.

    If just 1 then you won't get anything next year, if 2 probably not next year but you might get some the year after if still on £30k.

    If 3 or more then you'll definitely get tax credits next year and onwards on around £30k.
  • shedboy94
    shedboy94 Posts: 929 Forumite
    zagfles wrote: »
    There is no fixed upper threshold for tax credits at all, and nor will there be next year. Don't believe the bull**** you read in the papers.

    Whether you'll get any or not depends on how many children you have.

    If just 1 then you won't get anything next year, if 2 probably not next year but you might get some the year after if still on £30k.

    If 3 or more then you'll definitely get tax credits next year and onwards on around £30k.

    Not strictly true, it also depends on other factors such as whether you pay childcare.
  • zagfles
    zagfles Posts: 21,381 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Chutzpah Haggler
    shedboy94 wrote: »
    Not strictly true, it also depends on other factors such as whether you pay childcare.

    Yes, sorry should have added the usual provisos of "assuming no childcare/disabilities etc".
  • Looks like we won't then as my eldest starts school
    In September and my youngest will receive his nursery funding. I will budget for the worst then. Thanks for your advice.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.5K Banking & Borrowing
  • 252.9K Reduce Debt & Boost Income
  • 453.3K Spending & Discounts
  • 243.5K Work, Benefits & Business
  • 598.1K Mortgages, Homes & Bills
  • 176.7K Life & Family
  • 256.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.