Child tax credit limit reduced to £26,000

melly1980

Deleted_User wrote: »

Nobody gets 4k a month for childcare tax credits! The m!ximum is £300 per week.

]

Might ~I suggest that you re read the actual point because its somewhat different to what you think it is.

bagby

I thought that child tax credit replaced married man's tax allowance - this was when married men claimed for wife and children. If I remember rightly the ctc did was not as much as we lost in tax allowance and now as household earning just over 26000 that we are going to lose that as well

biscuit1_2

I to recieved this letter and was surprised to say the least. Do i follow the budgets ..not really i do read up the following day, and to be honest don't remember seeing this figure of £26,000 anywhere.What is causing me some distress is the fact that we earn around £35,000 between us with 1 child recieving £41.40 child tax credit but also £81 working tax credit so lose them both a total of £122 a month in one fell swoop ..or do i have the wrong end of the stick..

Murgatroyd21

biscuit1 wrote: »

I to recieved this letter and was surprised to say the least. Do i follow the budgets ..not really i do read up the following day, and to be honest don't remember seeing this figure of £26,000 anywhere.What is causing me some distress is the fact that we earn around £35,000 between us with 1 child recieving £41.40 child tax credit but also £81 working tax credit so lose them both a total of £122 a month in one fell swoop ..or do i have the wrong end of the stick..

You don't say if any of you have a disability or any childcare costs, but based on what you have provided, your claim will end.

I imagine the reason you are getting the amounts you do, particularly the wtc element, is that in the 2010/11 tax year you had an income substantially lower than that for 2011/12. For the ongoing award they will use the 2011/12 details unless you expect to earn less in the 2012/13 period.

If you keep the claim going and report a lower expected income figure from 06/04/12, it will result in that lower income being used. Be aware though, if you reduce income below the previous figure used and it turns out you had more you will be overpaid which will be recovered.

zagfles

bagby wrote: »

I thought that child tax credit replaced married man's tax allowance - this was when married men claimed for wife and children. If I remember rightly the ctc did was not as much as we lost in tax allowance and now as household earning just over 26000 that we are going to lose that as well

Yes the family element of CTC replaced the married couples' allowance. The rest of CTC and WTC replaced the WFTC (which replaced Family Credit).

So yes it's what was a "tax allowance" really which is now being taken off people, as it's those who only get the family element of CTC who are losing out.

Alias_Omega

Tried to work out £32,000 with 3 children, £0 childcare costs as Mrs AO is a SAHM.

If the CTC is lost (we dont get WTC) then its just another luxury to be removed from the family.

Murgatroyd21

Alias_Omega wrote: »

Tried to work out £32,000 with 3 children, £0 childcare costs as Mrs AO is a SAHM.

If the CTC is lost (we dont get WTC) then its just another luxury to be removed from the family.

About £53.60pw ctc entitlement based on these details.

biscuit1_2

Can anyone confirm which budget this change was made as the only place i can find any mention of this is on the hmrc website .I have looked at the december 2011 budget and i can only find this ..
Tax credit recipients
The Chancellor confirmed that all welfare payments would be increased in line with September’s inflation figures, which will mean recipients will receive a 5.2pc increase in April However, tax credits – which are claimed by working families on relatively low wages – will for the most part be frozen, with the exception of the “child element” of the working tax credit. This will be uprated in line with the consumer price index (at 5.2pc). But Mr Osborne announced that plans to increase the child element over and above inflation would be scrapped. He said that since the Coalition Government had come to power there had been a significant increase in the value of the child tax credit. ....nothing about reducing the qualifying limits ..this can be found here..
http://www.telegraph.co.uk/finance/personalfinance/how-budget-affect-me/8920894/Autumn-Statement-2011-the-losers.html !!!!!!!

kerryallc71

http://www.direct.gov.uk/en/Nl1/Newsroom/Budget/Budget2010/DG_188501

it was the june 2010 emergency budget .. i think ..

zagfles

biscuit1 wrote: »

Can anyone confirm which budget this change was made as the only place i can find any mention of this is on the hmrc website .I have looked at the december 2011 budget and i can only find this ..
Tax credit recipients
The Chancellor confirmed that all welfare payments would be increased in line with September’s inflation figures, which will mean recipients will receive a 5.2pc increase in April However, tax credits – which are claimed by working families on relatively low wages – will for the most part be frozen, with the exception of the “child element” of the working tax credit. This will be uprated in line with the consumer price index (at 5.2pc). But Mr Osborne announced that plans to increase the child element over and above inflation would be scrapped. He said that since the Coalition Government had come to power there had been a significant increase in the value of the child tax credit. ....nothing about reducing the qualifying limits ..this can be found here..
http://www.telegraph.co.uk/finance/personalfinance/how-budget-affect-me/8920894/Autumn-Statement-2011-the-losers.html !!!!!!!

This was announced in the June 2010 budget. See 2.37 of http://cdn.hm-treasury.gov.uk/junebudget_complete.pdf

2.37 From April 2011, the second income threshold for the family element of the Child Tax Credit will reduce from £50,000 to £40,000 and from April 2012, the family element of the Child Tax Credit will be withdrawn immediately after the child element. (37) (39)

Most of tax credits start tapering at £6420 but at the moment the family element (£545) is always retained till income gets to £40,000 (was £50,000). From April it will be lumped in with the rest of tax credits.

There is no specific mention of any upper income limit because there isn't and never has been any upper limit in the legislation. The upper limits quoted are simply a calculation of when the elements taper to zero. In the specific case of a family with one child, no childcare and no disabilites, that will be a bit under £26,000 from April. For other families the income limit will be completely different and will depend on exactly what elements they are entitled to.