Child Tax Credit and Season Ticket Loan - HELP!

Icequeen99

skintandscared wrote: »

I had to "thank" your post as you managed to put in one sentence what I waffled in two paragraphs. I hope the puppy will forgive me

Absolutely agree if that is the case. I had read the OP as suggesting that if she didn't do that she would only get 19k.

IQ

princessdon

Can I just say 9K to get to work!!!


flabergasted - I knew it was high - but THAT high! An all zone travel card in my area is £500!

tonicx8471

Ok My wife and I live in Peterborough and she commutes to london every day, hence the ticket cost. If she didn't have to travel to london and her job was in peterborough, she would not have this loan and her salary would be £19K. However according to HMRC, because it is included in her salary and paid to her at the start of the tax year, the HMRC has said that they have to take this final figure of £28K as a final figure, even though this is a loan and she pays it back.

skintandscared_2

Ok. Hypothetical situation - next year when your wife's season ticket is up for renewal, you win £10k on the lottery. Your wife decides to use that £10k to buy her annual season ticket, so she doesn't need to use the season ticket loan from work.

Is her salary for that year £28k or £19k?

alwaysonthego_2

From what I am reading the wife's salary is £19K and has been given £9k loan and TCs are using the salary plus the loan for the final figure of £28k?

tonicx8471

OK, if my wife won £10K on the lottery (would be nice) and used that for her travel and not the loan from her employer then her salary would be £19K.

krisskross

alwaysonthego wrote: »

From what I am reading the wife's salary is £19K and has been given £9k loan and TCs are using the salary plus the loan for the final figure of £28k?

But she wouldn't pay £9K a year to commute out of a £19K salary, that would be daft wouldn't it. No the travel 'loan' is an advance on her salary to enable her to get the best price on her travel costs. She still has the benefit of a £28K salary doesn't she?

Look at it as a salary advance rather than a loan and it makes more sense.

tonicx8471

but the annoyance is that my wife has to take out a loan from her company in order to go to work, then pay it back and now have to lose over £5K per year from tax credits just for the prvilege of having a job.

skintandscared_2

I'm confused then, because this makes no sense. Your wife commutes all the way from Peterborough to London every day for a £19k salary?? Forget the loan, because if she is given it on top of her salary, she never receives it - she buys a ticket with it then pays it back over the year, effectively reducing her take-home salary to £10k. That is the part that makes no sense to me! People commute to London for the enhanced wage. Why would she do this when she could probably earn more locally, after deducting the extortionate travel costs?

Most commuters who work in London get season ticket loans. It's very common. But its never included as part of a salary package, because it's not money that the employee ever actually receives. Saying that she has a £28k "salary" if she receives the loan isn't really the case. Are you absolutely SURE that your wife's salary isn't £28k and she ends up spending £9k of it on travel?

shedboy94

tonicx8471 wrote: »

the value of the P11d is £7188. P60 says £28K but that includes the loan, overtime and any bonuses.

How much was her salary, how much was the o/t, and how much was the bonus?