Tax credits stopping in April 2012

stjman

Just received a letter saying payments will stop April 2012

My wife & I earn joint income of £37k, we have 2 children and pay approximately £1000 a month in child care costs....roughly the same as my wife's part time salary. We receive £410 a month in tax credits, these credits are the only reason it is worthwhile my wife continuing to work, she enjoys her job but it wouldn't be finacially viable otherwise without the credits.

Now they are saying payments wil stop ??? So we are in total limbo as to what to do ? Should my wife stop working ? I thought the whole idea was to encourage people to work ?

Very confused at the moment, any advice welcome as I couldn't get any from HMRC....they said they will keep the claim open until April to see if our circumstances change...

Help ???

Murgatroyd21

2012/13 should get about £492 every 4 weeks due to childcare costs and increase in child element from April.

zagfles

What is going at HMRC? Another case of a family clearly entitled to a large amount in tax credits being told their claim will end in April.

stjman

Thanks for the replies so far people, why are they scaremongering poeople like ourselves ? I would understand a reduced payment come April due to budget cuts but to all of a sudden wipe out our benefits altogether ???

How did you work out £492 every 4 weeks Murgatroyd ? I wish someone at HMRC could just tell me what will happen after April so we can budget like most people try and do....still very confused as to what will happen

shedboy94

stjman wrote: »

Thanks for the replies so far people, why are they scaremongering poeople like ourselves ? I would understand a reduced payment come April due to budget cuts but to all of a sudden wipe out our benefits altogether ???

How did you work out £492 every 4 weeks Murgatroyd ? I wish someone at HMRC could just tell me what will happen after April so we can budget like most people try and do....still very confused as to what will happen

How old are the children and are they both in childcare?

stjman

youngest is 2, 3 in October and we pay £856 a month for 3 days child care

Eldest is 5, 6 in June, at school but we pay £16.50 a week for afterschool club

My basic income is £25k but sometimes there is commission, can vary, usually not mor than £2-3k a year. My wife's part time basic is about £1000 net a month so i think that works out at £16k a year. Our incomes haven't changed for a couple of years now

Any advice welcome as to why we don't meet criteria all of a sudden ?

mattalex2008

Murgatroyd21 wrote: »

2012/13 should get about £492 every 4 weeks due to childcare costs and increase in child element from April.

How is this calculated?
My hubby earns max £30,000 a year (including overtime, basic £24,000). I worked part time at woolies till it closed max £2,000 a year (on mat leave with second at the time) and the only tax credits we were entitled to then, were the basic child tax credit of £40 a month. No child care cost, just child benefit.
It didn't pay me to go back to work as child care and petrol, took more than i could earn!
That is all we still could get, as we did check it out before we deceided i'd stay at home, still only of been entitled to the basic child care, which i still get by being at home with my boys.
I really don't understand how they work it all out!
xx

WestonDave

The one who is 3 in October should start to get 15 hours per week free preschool in January (term after turns 3) which will dent the charge on that. You will then have 18 months of that before they start school. The thing to weigh up (if the credits go which may just be HMRC sending out a consultation type letter to inform everyone that the system is changing so everyone needs a review) is whether keeping the job for effectively no money for 9 months is worthwhile in terms of keeping the job and career.

smk77

zagfles wrote: »

What is going at HMRC? Another case of a family clearly entitled to a large amount in tax credits being told their claim will end in April.

They're playing dirty games so that people who are entitled to tax credits fail to act and therefore don't get them.

I hope Martin Lewis picks up on this and at least mentions it in the weekly email.

stjman

We still would like to know if benefits will stop come April....HMRC say they will stop, people on here saying they will continue, maybe even increase ??

Is it the case HMRC can't tell me until after 6th April 2012.....meaning over a month of money worries and uncertainty for my wife over her job ?

Just wish I could find out one way or another if we will receive anything for 2012-2013...now !!!!

Does anyone know of the actual cut off point for income....I see figures of £26,000, £32,000 and £41,300 joint ??? very confusing. HMRC said they have our childcare costs details of over £200 a week but that still doesn't make any difference ???

Icequeen99

HMRC are sending the letters out to people they think, based on the information they have on their system, will be entitled to Nil from April 2012.

A lot of people I have seen with these letters have said that they are still entitled because their income is below the threshold, but in some cases HMRC don't know that because people haven't updated their current income and so awards are still being based on previous year income.

I would suggest you have a look at your last award notice and come back and let us know the income figure that is on it for last year. That might explain why you have received a letter.

If you think your income for this year is lower then you need to contact HMRC as soon as possible and given them an estimate, also make sure they have your childcare costs right.

If you tell HMRC you wish to remain in the system, things will remain in place from April.

That explains why you are getting different information on here as compared to HMRC. The figures you are quoting here are your current year income? But HMRC will be likely basing your current claim on last year's income. So that is why you will get different answers.

As to your question about what is the cut-off, everyone's cut off is different. It depends on the number of children, if anyone has disabilities, your childcare amounts etc...but in your scenario it will be much higher than £32,200 (which is the amount for 2 children, no childcare and no disabilities).

IQ

IQ