tax credit threshold

smythsam

hi all this is my first post
we receive family credit for 3 children and we both work
this year we get £70.00 a week from next year if daughter leaves school we get £2.29 a week
what i cant understand is how one child is worth nearly 67 a week and my two boys are worth £1.00 each??
very confused as thought we would lose a third of our money
not sure how we are going to manage losing nearly £300.00 a month when iam sure my pay will only increase by 10p an hour if iam lucky lol

HappyMJ

Each child after the first is "worth" a total of £64.99 a week in the sum of child benefit and child tax credits. The first is worth £82.39 due to the extra child benefit of £20.30 a week and £545 annual family element of child tax credit and the £2,690 child element of child tax credit divided by 365 and multiplied by 7 equals £51.59 plus the £20.30 is £82.39 per week. Second and subsequent children get £13.40 child benefit and £2,690 child element per year which is £64.99 a week.

So if you lose eligibility for one child then you lose £64.99 a week.

If that causes a problem then insist that your child gets a job and pays you board.

smythsam

hi thanks for your post
i will be asking my daughter to get a job and fingers crossed she wil lbe lucky.
its such a big decrease in family credit and we work 85 hrs between us as it is now so wouldnt be able to increase my hours to cover this shortfall.. (2 younger children at home)
i understand my daughter takes us over the threshold and when she is no longer included for tax reasons we are now under the threshold with 2 children
iam sure there are lots of families this will happen to but it is such a big decrease

princessdon

Perhaps she can consider remaining in education or is this something that she doesn't wish to do.

HappyMJ

smythsam wrote: »

hi thanks for your post
i will be asking my daughter to get a job and fingers crossed she wil lbe lucky.
its such a big decrease in family credit and we work 85 hrs between us as it is now so wouldnt be able to increase my hours to cover this shortfall.. (2 younger children at home)
i understand my daughter takes us over the threshold and when she is no longer included for tax reasons we are now under the threshold with 2 children
iam sure there are lots of families this will happen to but it is such a big decrease

85 hours a week at minimum wages is £27,000 per year. A reasonable figure to look after 2 adults and 2 children.

princessdon

HappyMJ wrote: »

85 hours a week at minimum wages is £27,000 per year. A reasonable figure to look after 2 adults and 2 children.

Especially with 2 x £8K tax free allowances.

A 1 wage earner would be in the same situation with regards to tax credits and a far lower take home pay.

smythsam

yes it is a reasonable figure for both of us working till we drop
but take of tax. childcare.national insurance its not £270000 and its a family of 5.
my question was i just thought all children were counted for the same amount and not first child.
i know child benefit is counted like this.

princessdon

smythsam wrote: »

yes it is a reasonable figure for both of us working till we drop
but take of tax. childcare.national insurance its not £270000 and its a family of 5.
my question was i just thought all children were counted for the same amount and not first child.
i know child benefit is counted like this.

A family of 7 children would only be paid for 3 children (3 max on a claim). It may seem unfair - and yes I do know where you are coming from as you clearly work a lot of hours but that is the way it is.

A family with only 1 tax free allowance (therefore paying much more in tax) would be in the same position.

Is there nothing you can "cut back on"?

smythsam

hi thanks for your post
didnt realise you could only claim for 3 children max lol
we just get by now on our income and tax credits but its going to be very different next year.
sometimes feel we just work to pay bills and rent and i know everyone does this but theres never anything left for a treat or extras..
today is raining and i would love to take the kids to the pictures but no chance..
will look on the bright side thoe as know theres people much much worse off than us x

HappyMJ

smythsam wrote: »

hi thanks for your post
didnt realise you could only claim for 3 children max lol
we just get by now on our income and tax credits but its going to be very different next year.
sometimes feel we just work to pay bills and rent and i know everyone does this but theres never anything left for a treat or extras..
today is raining and i would love to take the kids to the pictures but no chance..
will look on the bright side thoe as know theres people much much worse off than us x

I don't know where it came form either every child after the first gets the family a total of £64.99 more every week combined in child benefit and child tax credits. You could have 7 children and get £82.39 for the first and £64.99 for every other child totalling £472.33 a week in both child benefit and child tax credit plus income support or JSA or working tax credits for the parents plus housing benefit if renting plus council tax benefit if total income is low enough.

There are proposals to limit some benefits to 3 children but that won't be for a few years.

As your child will be leaving school then she no longer qualifies as a child so your family size is 4 plus 1 outside of benefits and she will then be a young adult who is expected to either be in work, education or training. If she is a NEET (Not in Employment, Education or Training) then she won't get benefits if she's under 18.

princessdon

Am I wrong then Happy (apologies if this is the case OP). It's just the tables all stop at 3 children so i assumed no more CTC was given for over 3?


http://www.direct.gov.uk/en/MoneyTaxAndBenefits/TaxCredits/peoplewhohelpothers/Entitlementtablesfortaxcredits/Youworkandalsohavechildren/DG_174885