2012 - 2013 Tax Credits

Elvis216

I've been trying to work out my entitlement to tax credits for the next financial year but can’t find any income limits for a 2-parent family with 3 kids (2 are disabled on middle rate DLA). Both working me 40+ hours per week, wife 14 hours per week. I earned £32000 last year (2011) and my wife £5000. I did estimate £29500 for 2011 for me.

My workings are as follows:

Entitlements: -
CTC
545
2690 x 3
2950 x 2
Total - 14515

WTC
1920
1950
790
Total - 4660

Income 37000 - 6420 = 30580
x 41% = 12537

Max award (4660 + 14515) - 12537 = 6638 (127.65 week)

My earnings for last year were £29000 (2010) and the wife £5000, does this mean that the rise this year will be disregarded and taken into account in the next period 2013-2014 or will I have to pay some back because of the rise and the fact I earned 2500 above my estimate for last year.

Any help much appreciated.

Pepzofio

I'm a bit confused by your dates, but assuming you mean

2010/11 earnings: £29k (you) + £5k (wife)
2011/12 estimated earnings: £29.5k (you) + £5k (wife)
2011/12 earnings: £32k (you) + £5k (wife)

As the estimate you provided for this year was higher than your 2010/11 income, your award will be based on last year's figures. Therefore you should not incur an overpayment because you've earned slightly more, as you're still well within the £10k income rise disregard.

With regards next year's figures, your calculations seem fine to me.

kingfisherblue

I can't understand why you get WTC - the cut off for this is somewhere between 17-18k.

zagfles

kingfisherblue wrote: »

I can't understand why you get WTC - the cut off for this is somewhere between 17-18k.

They won't get any WTC, but the WTC elements are used in the calculation. The £127pw they get will be all CTC.

Murgatroyd21

kingfisherblue wrote: »

I can't understand why you get WTC - the cut off for this is somewhere between 17-18k.

He isn't getting wtc. You add all the elements you meet the criteria for together, then use the income details and reductions to decide how much to take away from that figure.

Income = 18000 - 6420 = 11580 x 41% = 4747.80 ( amount to take away from the element entitlement
=
WTC elements = 4660 - 4747.80 = no wtc entitlement.
The reductions are applied against the wtc elements first, then the ctc elements.

Hope this makes sense to you.

amothercandream

zagfles wrote: »

They won't get any WTC, but the WTC elements are used in the calculation. The £127pw they get will be all CTC.

Aaah Zagfles - I am so pleased you are still on here. I was reading your posts yesterday on tax credits and got happy until I realised that it was going back to 2010/2011 tax credits. But Harrah! you are here advising on here too - so pretty please can you help me. This will be a similar scenario to what you helped someone else on so hopefully you can help me too.

I am currently on maternity leave and deciding whether or not to return to work. Now I get confused on all the figures you all post and the 41p and basically everything so please - I beg you to treat me like a child so I can get my head around this stuff (I lost a lot of brain cells in the past 12 months!)

if I return to work our annual income will be £27000, 1 child paying £78 a week in childcare. Hubby works 36 hours, I will be working 23

If I don't return to work our annual income will be £12000, no childcare. Hubby works 36 hours

My third option is to quit my job and work elsewhere (I hate my job with a passion - and in my opinion I shouldn't have to take a pill to go to work) soooo..... If our income was £16000 a year. Hubby works 36 hours and I will work 12 - no childcare though as I will work when my Husband doesn't.

Please please can you help me or anyone - it's just I've seen Zagfles comments a lot.

amothercandream

I've done some figures based on what elvis did

so if i quit work i would get £107.83 per week with 1 child and me not working at all?? is that correct before i start running various scenarios. how do i calculate what i would get paid in childcare if i was to work. Thank you so much to whoever helps. I'm knew to all this stuff and it's boggling!

lazyman72

Elvis216 wrote: »

I've been trying to work out my entitlement to tax credits for the next financial year but can’t find any income limits for a 2-parent family with 3 kids (2 are disabled on middle rate DLA). Both working me 40+ hours per week, wife 14 hours per week. I earned £32000 last year (2011) and my wife £5000. I did estimate £29500 for 2011 for me.

My workings are as follows:

Entitlements: -
CTC
545
2690 x 3
2950 x 2
Total - 14515

WTC
1920
1950
790
Total - 4660

Income 37000 - 6420 = 30580
x 41% = 12537

Max award (4660 + 14515) - 12537 = 6638 (127.65 week)

My earnings for last year were £29000 (2010) and the wife £5000, does this mean that the rise this year will be disregarded and taken into account in the next period 2013-2014 or will I have to pay some back because of the rise and the fact I earned 2500 above my estimate for last year.

Any help much appreciated.

Think you have this a little wrong, i have done you a calculation below, based on a spreadsheet i wrote in excel to do the calculation for next year, pity that the DWP cannot get one similar on there website.

CTC
545
2690 x 1
2950 x 2
Total - 9135

WTC
1920
1950
790
Total - 4660

Income 37000 - 6420 = 30580
x 41% = 12537

Max award (4660 + 9135) - 12537 = 1257.20 (24.18 week)

Your calculation was based on you having 5 children 3 x child element and 2 x Disabled Child element, where you actually have 3 children 1 x Child Element and 2 x Disabled Child Element

caz246

Can someone please help me with calculations?

These are rough figures....2011/2012 joint income £8000 (partner out of work just started a new job recently and me on maternity) 1 child, no childcare.

2012/2013 estimated joint income £35000, both working 30+ hours, childcare £205 per week.

I am getting conflicting advice, from £10 to £120 per week tax credits. Can someone please clarify? Much appreciated.

ejc81

lazyman72 wrote: »

Think you have this a little wrong, i have done you a calculation below, based on a spreadsheet i wrote in excel to do the calculation for next year, pity that the DWP cannot get one similar on there website........


................Your calculation was based on you having 5 children 3 x child element and 2 x Disabled Child element, where you actually have 3 children 1 x Child Element and 2 x Disabled Child Element

I think you'll find he was right and your spreadsheet was wrong. The disabled child element is an extra payment for each disabled child. It does not replace the child element, it is in addition to it.

Icequeen99

lazyman72 wrote: »

Think you have this a little wrong, i have done you a calculation below, based on a spreadsheet i wrote in excel to do the calculation for next year, pity that the DWP cannot get one similar on there website.

CTC
545
2690 x 1
2950 x 2
Total - 9135

WTC
1920
1950
790
Total - 4660

Income 37000 - 6420 = 30580
x 41% = 12537

Max award (4660 + 9135) - 12537 = 1257.20 (24.18 week)

Your calculation was based on you having 5 children 3 x child element and 2 x Disabled Child element, where you actually have 3 children 1 x Child Element and 2 x Disabled Child Element

Lazyman, i think you will find it is your spreadsheet that is wrong. The OP had the calculation right. He gets 3 child elements (one for each child) and then 2 disabled child elements. They are paid in addition to the child elements not instead of.

IQ