tax credit - maximum income

kokolino23

Hello,
We're a family with a 20 month old child, I'm the only one who works and I've had last £33k last year (obviously before tax). However, I've received a letter saying that I won't receive anymore tax credit ?!
From what I know and read here, this should be if we only go over £42k ?! We also get the little one to the nursery but only 3hrs/day x 3 days/week as can't afford more than this. This government only hits on working people ?!

[Deleted User]

I'm not an expert but I believe the amount is now £28000. I think you and your partner both have to be working to get the childcare element. I'm sure someone more knowledgable will be along shortly.

paddedjohn

I thought the 42k limit was for child benefit.
OP, your wife already pays for 9 hours child care per week, if she increased this to 16 and found a job for 16 hrs per week then i think you can apply for tax credits. (i could be totally wrong but im sure this is the case)

Caz3121

The limit for one child and no childcare costs is now £26k
Although you have childcare costs these will not be counted as they are only considered if both parents work over 16 hours per week

nannytone_2

with 1 child (no sidabilities) the cut off for child tax credits is 26k.

with only you working you wont get any help with childvare, as both parents need to be working at least 16 hours

kokolino23

First of all, thanks for your replies.

If my wife can find a part time job (min 16hrs/week), then the increase for child tax credit will go up to £42k? Or doesn't matter and this is capped @ £26k / family?
The only advantage if she finds a job would be the help with childcare, I'd guess.

Caz3121

It would depend on the childcare costs - if £90 per week then there would still be no tax credits (although you would have an additional income)
If £175 per week then you would get around £50 per week tax credits, but would still need to pay the majority of the childcare costs
http://www.hmrc.gov.uk/taxcredits/people-advise-others/entitlement-tables/work-and-child/work-pay-childcare.htm

nannytone_2

it doesnt matter really.
at the best you would receive partial nursery costs to a maximum of 70%, though with her income on top of your income, it would probably be very little

princessdon

yep - Welcome to the benefit system

Of course if you lost your job or your wife was single ....


but lets not go there eh?

annie1975_2

princessdon wrote: »

yep - Welcome to the benefit system

Of course if you lost your job or your wife was single ....


but lets not go there eh?

Especially the single bit??

Horseunderwater

You will not get any Child tax credit ever on gross income of £33k with one child. Cut off really is £26k. And not even if you had another one. £32.2K for that.
So no you will not get any extra at all.
All you can get is child benefit paid in arrears 4 weekly. I should know as I have just 1 child and mine has stopped for same reason.
Not much point in your OH going out to work as any child care will use her income up and double your fuel costs perhaps or bus tickets. Child care from CTC is not much per week if you put it up against the actual cost. Unless you are lucky and have a parent who can do it for the cost of food provided. We never had that option. Your child for the moment will be better off staying at home with mum for now. One possible option is to go down the wife becoming a child care provider. That way she could perhaps take on 2 smaller children or perhaps collect some slightly older ones from a local primary school to mind them for when parents need to pick them up. However the home needs to be inspected by local authority and you need to pay for a CRB check (£60). And probably get some liability insurance to cover the business. My neighbour does that. She has 2 children and takes in 3 others to do school run for others, who cannot. So she has them for about 3/4 hour in morning and walks them to school with her own and collects them all at days end. And that can be from 3.15 till 6pm some of the days. So if there is a primary school within walking distance, that could be an option.
And if money is a problem, then look at your outgoings and get them sorted out. Lots of tips on this site.