Tax Credits Help Please

MissMoneypenny

shedboy94 wrote: »

What's your definition of a benefit?

zagfles wrote: »

Something with "benefit" in its name. What's yours?

It has to have the word "benefit" in it's name to be a benefit!:eek:

JSA (Job Seekers Allowance) hasn't got benefit in it's name. Neither has Employment and Support Allowance; Income Support; Support for Morgage Interest; Pension Credit; Attendance Allowance; Carer's Allowance; Child Tax Credits; Working Tax Credits; Disability Living Allowance (soon to be PIP - no sign of the word "benefit" there either); Winter Fuel Allowance.

I wonder how many other benefits we could name that don't have the word "benefit" in it's name?

MissMoneypenny

My Bold

http://www.hmrc.gov.uk/manuals/eimanual/eim76100.htm
"The following benefits are not taxable. The benefits are described at the paragraphs mentioned below:

• Attendance Allowance
• Back to Work Bonus (see EIM76223)
• Bereavement Payment (see EIM76171), replaced Widow's Payment from 9 April 2001
• Child Benefit
• Child's Special Allowance
• Child Tax Credit
• Cold Weather Payments, see also Winter Fuel payment
• Council Tax Benefit, administered by local authorities
• Constant Attendance Allowance, see industrial disablement benefit below
• Disability Living Allowance
• Income related Employment and Support Allowance (see EIM76186)
• Exceptionally Severe Disablement Allowance, see industrial disablement benefit below
• Guardian's Allowance
• Housing Benefit, administered by local authorities
• Incapacity Benefit for first 28 weeks of entitlement, taxable thereafter (see EIM76180)
• Income Support, certain payments (see EIM76190)
• Industrial Injuries Benefit, a general term covering industrial injuries pension, reduced earnings allowance, retirement allowance, constant attendance allowance and exceptionally severe disablement allowance
• Invalidity Benefit, replaced by Incapacity benefit from April 1995 but still payable where invalidity commenced before April 1995.
• In-work credit
• In-work emergency discretion fund payment
• In-work emergency fund payment
• Maternity Allowance, see EIM76361
• Payments out of the Social Fund to people on a low income to help with maternity expenses, funeral costs, financial crises and as community care grants. The fund also makes interest-free loans.
• Pensioner's Christmas Bonus
• State Pension credit
• Reduced Earnings Allowance, see industrial disablement benefit above
• Retirement Allowance, see industrial disablement benefit above
• Return to work credit, including the self-employment credit
• Severe Disablement Allowance
• War Widow's pension, see EIM76103
• Winter Fuel payment
• Working Tax Credit"

Only 6 of those benefits had the word "benefit" in it.

princessdon

I don't think anyone can consider them not to be a benefit. Originally, yes that wasn't the intention but over the years they became one.

I guess when they stopped adding a child element to benefits like Income Support etc, it finally hit home.

I do think that they were once a tax credit (I think there was a time when anyone with a child got them), replacing the married mans tax break etc.

But for a long time (and more so when they lower the income limit) they are a benefit for low incomes.

The difference is that some people don't see them as a benefit.

notanewuser

princessdon wrote: »

I don't think anyone can consider them not to be a benefit. Originally, yes that wasn't the intention but over the years they became one.

I guess when they stopped adding a child element to benefits like Income Support etc, it finally hit home.

I do think that they were once a tax credit (I think there was a time when anyone with a child got them), replacing the married mans tax break etc.

But for a long time (and more so when they lower the income limit) they are a benefit for low incomes.

The difference is that some people don't see them as a benefit.

I'm not sure that's true.

princessdon

notanewuser wrote: »

I'm not sure that's true.

You could be right. I remember when I was pregnant with my eldest I though - Oh good we get something to replace Married Mans - and at the time we were to get something,

Then we earnt too much as they changed the threshold.

Was it not like CB and universal in the first year to two?

notanewuser

Not sure. Found this.

http://news.bbc.co.uk/1/hi/business/3198211.stm

zagfles

MissMoneypenny wrote: »

It has to have the word "benefit" in it's name to be a benefit!:eek:

Yes, that's an excellent definition to wind people like you up :rotfl:I'm still waiting for yours. And your reply to my PP.

princessdon

notanewuser wrote: »

Not sure. Found this.

http://news.bbc.co.uk/1/hi/business/3198211.stm

My child was born in 2001 and there was a similar scheme at that time? That link says 2003 so maybe they were called something else in 2001.

zagfles

princessdon wrote: »

You could be right. I remember when I was pregnant with my eldest I though - Oh good we get something to replace Married Mans - and at the time we were to get something,

Then we earnt too much as they changed the threshold.

Was it not like CB and universal in the first year to two?

It wasn't universal but there was a high income limit (about £66k with a baby).

zagfles

princessdon wrote: »

My child was born in 2001 and there was a similar scheme at that time? That link says 2003 so maybe they were called something else in 2001.

Between April 2001 and April 2003 there was a "children's tax credit" tax allowance, which was tapered if either parent was a higher rate taxpayer. This caused outrage as it was assessed on single income not joint income (sound familiar? pretty much like the child ben changes now).

So in April 2003 this was replaced by the family element of the current tax credits, with a taper starting at £50k joint income.