Changes in Tax Credits in April 2013

chonorla

Hi

Just a quick question - I am due baby number 4 in April and I am sure I read somewhere that my tax credits would not increase when he is born due to the changes etc
This is not a problem but my friend said she is sure I am wrong.? Income will be roughly the same ( I gave up work but DH had a change of jobs and more money).

Any ideas or did I dream it? :rotfl:

Horseunderwater

Doubt very much if you will lose any extra portion of tax credit due yet, unless you are in one of the 3-4 test areas in the north east of England.
So far as I am aware the tax credits merge into UC does not begin until April 2014.
So in theory you should get 4 x children 2690 + 1 family £545 less any wages of DH over the limit that apply in your case based on the 41p/£1 tapering. Not knowing his wage - no body can give you an estimate. Oh and the Child bit goes up in April to £2720 per child. Obviously this year will be pro rata if baby arrives prior to end of tax year, so it will possibly not be that much extra for this year. Are they aware of his increased income for this year yet? If not tell them at time baby arrives so that they can give you a more accurate payment until full income is known at renewal. That way you will not get too much in way of an overpayment.

chonorla

Thanks for your reply.

Hi yes they are aware of his increased wage, but as I gave up work at the same time - it made very little difference to the tax credit award except the loss of a bit of childcare help we got.

And we are in Wales, so not one of the test areas.

Baby is due the 13th April and I will not be returning to work at all next year as am currently do my MA. I am estimating his earnings will be around the £30,000 mark - more or less the same as his old job (20,000) plus my part time wage (10,500).

Guess I am getting confused with the changes that will eventually come in to play in 2014...:o

Horseunderwater

chonorla wrote: »

Thanks for your reply.

Hi yes they are aware of his increased wage, but as I gave up work at the same time - it made very little difference to the tax credit award except the loss of a bit of childcare help we got.

And we are in Wales, so not one of the test areas.

Baby is due the 13th April and I will not be returning to work at all next year as am currently do my MA. I am estimating his earnings will be around the £30,000 mark - more or less the same as his old job (20,000) plus my part time wage (10,500).

Guess I am getting confused with the changes that will eventually come in to play in 2014...:o

You do realise that you will be able to deduct 39 weeks of £100 off your earnings don't you? So your earnings will be £10.5k less £3.9k for next year - although award will be based on this years income, you can advise them of this fact when you do renewal and see if they will do an adjustment based on revised estimated income for following year - this will also depend on if yo go back to work after that point or not.

chonorla

I am claiming Maternity allowance, so this is completely disregarded for tax credits purposes I believe. SMP is different I think?

I will not be returning to work till my Masters ends (well just the dissertation left) in January 2015. And I told tax credits when I left and gave them my new figures for the year, so the estimate for this year is pretty accurate.