disregard/renewal/cut off

*depressed*

all gone - thanks

Icequeen99

The 2,500 disregard is for falls in income. It is £10,000 for rises.

12/13 will be based on £25,000 (11/12 income)

The 26,000 limit wouldn't apply to them anyway because they have childcare costs. It will be higher for them.

IQ

*depressed*

thank you very much for your help!

x

*depressed*

all gone - thanks

zagfles

*depressed* wrote: »

just wondering another quick question for SIL

BIL now has a new job (started this week) and now earns £27k a year

with it being over the 10k threshold, i assume they would only take the extra £1k as income for tax credits? or would it now stop now that they earn over the threshold? sil is worried incase she gets an overpayment if they continue to recieve tax credits based on £10k a year less?

thanks

You first need to work out the joint gross for the whole tax year. If he's only just started a job on £27k he won't earn £27k this tax year as he was earning less up till now. Once worked out phone and tell them.

The first £10k over last tax year is disregarded, so if the joint this year is say £38k then tax credits will use an income of £28k. They'll still get some on £28k, there is no sudden cut off threshold as everyone seems to think, it's gradually tapered till it disappears. With 1 child and £50pw childcare this will be at about £30k.

They should look into childcare vouchers for next year as on that income they won't get any tax credits from next April.

*depressed*

thank you very much!

x