Tax Credits Stopped Correctly?

Icequeen99

chambta wrote: »

If my income falls by £4k it's more than £2.5k though?

Yes, but with two children the cut off for tax credits is around £32,000 so if you were around that then you may not get much if anything.

Whatever the estimated income, you have to add 2,500 back on. So if you think you will earn £31,000 - they would based it on 33,500 so you might be over.

IQ

chambta

Icequeen99 wrote: »

Yes, but with two children the cut off for tax credits is around £32,000 so if you were around that then you may not get much if anything.

Whatever the estimated income, you have to add 2,500 back on. So if you think you will earn £31,000 - they would based it on 33,500 so you might be over.

IQ

So they simply add on £2,500 to whatever you estimate? :rotfl:

I was getting the absolute minimum before and anticipated the same. We'll see.

Icequeen99

chambta wrote: »

So they simply add on £2,500 to whatever you estimate? :rotfl:

I was getting the absolute minimum before and anticipated the same. We'll see.

But the rules have changed for this year. So before, everyone got the £545 up to a certain amount. Now that is included in the normal tax credits and tapered away gradually based on income. So you will need to have income a fair bit under £32,000 to get the 545 you were getting before.

Also, the 2500 is a new rule. Basically yes, they will add 2500 to the estimate unless the estimate is not 2500 less, in which case the claim stays based on previous year.

IQ

bully1234

I don't understand these tax credits ....

Just received £49.30 from Child Tax! Thought this was all stopping?

For Tax Year 2012 my husband earned £32911, I earned 7492, we have 2 children.

I thought from April onwards we were not entitled to anything as per the Child Tax Calculator. We have received no letter from HMRevenue.

chambta

Icequeen99 wrote: »

But the rules have changed for this year. So before, everyone got the £545 up to a certain amount. Now that is included in the normal tax credits and tapered away gradually based on income. So you will need to have income a fair bit under £32,000 to get the 545 you were getting before.

Also, the 2500 is a new rule. Basically yes, they will add 2500 to the estimate unless the estimate is not 2500 less, in which case the claim stays based on previous year.

IQ

I understand what you're saying. It's just an odd way of doing it - no wonder the majority of people you speak to don't know what's going on either.

a66y31

bully1234 wrote: »

I don't understand these tax credits ....

Just received £49.30 from Child Tax! Thought this was all stopping?

For Tax Year 2012 my husband earned £32911, I earned 7492, we have 2 children.

I thought from April onwards we were not entitled to anything as per the Child Tax Calculator. We have received no letter from HMRevenue.

Im in the same boat still paying us ...guess they will wait till our p60 figures for renewal then take it back off us by the time they sort them all out.Im trying not to spends ours might give them an estimate cus I dont want to be owing them loads... Its very hard not to spend it..lol