Tax Credit Cut?

zagfles

bankhater_1965 wrote: »

raising the tax threshold by a mere £500 extra really does not make any differance in the circumstances, why do you mention gordon brown is to blame !

What are you on about? Where has this £500 come from? The tax threshold has gone up a lot more than £500 in the last 2 years.

The current WTC threshold is about where the previous govt left it (this govt have increased it slightly). It hasn't been cut, by anyone.

What do you think the income tax threshold should be? What do you think the WTC threshold should be?

bankhater_1965

zagfles wrote: »

What are you on about? Where has this £500 come from? The tax threshold has gone up a lot more than £500 in the last 2 years.

The current WTC threshold is about where the previous govt left it (this govt have increased it slightly). It hasn't been cut, by anyone.

What do you think the income tax threshold should be? What do you think the WTC threshold should be?

enough for me to buy a yaght ! and a holiday home in barbados

mercer_2

So just a recap then; I earn £19,100, my partner doesn't work and we have two children - we pay no child care costs.

I have been told I won't get WTC as the threshold is £17,000, yet I got WTC the year before and have for several years. My partner is getting CTC but at a reduced rate as we gave the wrong figure once.

Are we elgible for WTC, and if not why?

50Twuncle

zagfles wrote: »

The threshold for WTC (assuming no childcare/disabilities) is £18k if working 30+ hours, and has not changed at all since last year. It's about £16k if working under 30 hours.

Don't know where the £17k comes from as it's incorrect in all cases.

What about those with disabilities - has this changed ?

Icequeen99

mercer wrote: »

So just a recap then; I earn £19,100, my partner doesn't work and we have two children - we pay no child care costs.

I have been told I won't get WTC as the threshold is £17,000, yet I got WTC the year before and have for several years. My partner is getting CTC but at a reduced rate as we gave the wrong figure once.

Are we elgible for WTC, and if not why?

Not at that income you won't get any WTC paid to you, although it will be included in your calculation.

Have you always had exactly the same income? How many years did you earn £19,100? Did you have a period when your income was lower?

If you got WTC the year before, it is likely to be because the income in the year before that was lower.

IQ

mercer_2

I've been on £19,100 for two years now, year before I was on £14,000 plus commission, which worked out to that amount. We did put £14,000 on that claim though. We've only been claiming for three years.

pmlindyloo

Tax credits are incredibly complicated.

It is made even more complicated by the fact that it is based on the previous tax year's figures.

If your circumstances change considerably during the present tax year then it would be sensible to inform the tax credits office of a change of circumstances and see what they advise.

Although we can all attempt to give posters the benefit of our knowledge I am of the opinion that tax credits are a bit of a 'minefield' and you need to speak directly to the tax credits department to get information. There are so many anomalies that it is really difficult to give a 'correct' answer.

I have found this

http://www.hmrc.gov.uk/leaflets/wtc2.pdf which anyone can trawl through if they have the time!

Icequeen99

mercer wrote: »

I've been on £19,100 for two years now, year before I was on £14,000 plus commission, which worked out to that amount. We did put £14,000 on that claim though. We've only been claiming for three years.

Well there is the answer.

So the first year you received 19,100, your tax credits were based on 14,000 so you received WTC.

This year, tax credits are based on last years income of 19,100 so you no longer get it..

However, sounds like you should never have got it if you didn't declare the commission.

IQ

Icequeen99

pmlindyloo wrote: »

Tax credits are incredibly complicated.

It is made even more complicated by the fact that it is based on the previous tax year's figures.

If your circumstances change considerably during the present tax year then it would be sensible to inform the tax credits office of a change of circumstances and see what they advise.

Although we can all attempt to give posters the benefit of our knowledge I am of the opinion that tax credits are a bit of a 'minefield' and you need to speak directly to the tax credits department to get information. There are so many anomalies that it is really difficult to give a 'correct' answer.

I have found this

http://www.hmrc.gov.uk/leaflets/wtc2.pdf which anyone can trawl through if they have the time!

Often speaking to HMRC is the answer, but there are a couple of people on this board who know the tax credits system inside out and if the information is given can give an answer. The HMRC don't always give the right answer.

Once you understand them, tax credits aren't that complicated.

Mostly the problem is that people don't give enough or the right information.

IQ

shedboy94

mercer wrote: »

Hi,

I've been thrust into a pickle thanks to HMRC. I found I've got no tax credits in my bank this morning and my partners has been cut also. I have been told that I am not eligble for working tax credits because I earn £19,200, and the threshold is £17,000. Yet, I've been on BBC site and that gives a example family earning £25k and they get tax credits.

We have no child care costs and my partner is not employed.

I've looked on several web sites and cannot see anything about this £17k threshold, nothing on HMRC either.

Can someone please help as we are in a real tight spot and cannot afford fuel and food :mad:

** EDIT - I have children, one is three and the other eighteen months.

Thanks for everyone's help.

I'm confused....why is it HMRC's fault?
HMRC didn't make you claim benefits
HMRC didn't declare incorrect income
HMRC would have issued an award notice last year advising you of the reduction in benefits, assuming they had been provided with the correct information
HMRC are paying you what you are entitled to, less the interest free 'loan' repayments from when you claimed too much.