Tax Credits Help Please

princessdon

zagfles wrote: »

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.

Argh - Thank you. My memory from those days is hazy. but yes I do remember now, they said it was to replace Married Mans as people were co-habitiing and it was to help children and yes I do remember being annoyed as I was going to give up work for a year.

Then I never got the new version either because they put a cap on it when I returned after mat leave.

It is a bit famililar to the new CB isn't it!

Pedent

notanewuser wrote: »

Eh? The 90% is only the first 6 weeks. After that it's £130ish per week.

It's 90% for 6 weeks, and then the lower of 90% or £130 for 33 weeks. In this case, the 90% is lower than £130, so it'll be 90% for the full 39 weeks.

shedboy94

zagfles wrote: »

They are "tax credits". Something with "benefit" in its name. What's yours?

I would define a benefit as any money given to you directly or indirectly by the state.

I'm presuming by your logic then JSA/ESA isn't a benefit, it's an "allowance", IS is a "support" and the only true "benefits" are housing, CT and CB?

BigAunty

shedboy94 wrote: »

I would define a benefit as any money given to you directly or indirectly by the state.

I'm presuming by your logic then JSA/ESA isn't a benefit, it's an "allowance", IS is a "support" and the only true "benefits" are housing, CT and CB?

It's amazing how many people post on this forum that they aren't getting any benefits, just tax credits and child benefit...

Tax credits aren't viewed as part of the welfare state by some, despite the fact that they are paid to those on low incomes and are subsidised by tax payers like other more clearly defined benefits. And child benefit isn't considered a benefit because until recently, everyone with a kid could get it. As a universal benefit, it apparently doesn't count...

shedboy94

zagfles wrote: »

UC is universal credit which is replacing tax credits and some benefits such as JSA(IB), IS, HB. They will work differently, there's no requirement to actually work, as there is with WTC, but in some cases there will be a requirement to seek work or get a reduced amount. It's quite complicated, been discussed here loads have a search.

Why are you calling JSA and IS benefits when they are, by your logic, not benefits?

Or, apart from the name, what in your eyes is the difference that makes IS/JSA a benefit, but WTC/CTC not?

zagfles

shedboy94 wrote: »

I would define a benefit as any money given to you directly or indirectly by the state.

So a tax rebate is a benefit then. Or a tax allowance even - that's giving money indierctly.

Does it have to be money, what about stuff the state provides free? Presumably free prescriptions/dentist are a "benefit"? If so then what about other NHS care, is seeing your GP without paying a "benefit"? Is having an operation to remove a tumour a "benefit"? What about state education, another benefit! Or going for a walk in the park maintained by the council, or down a street lit by them?

Basically we're all on benefits

zagfles

shedboy94 wrote: »

Why are you calling JSA and IS benefits when they are, by your logic, not benefits?

I was taking the p**s, if you hadn't realised

Or, apart from the name, what in your eyes is the difference that makes IS/JSA a benefit, but WTC/CTC not?

"Tax credits" were specifically designed to sit between the tax and benefits system, being neither one nor the other. They were created from a combination of benefits and tax allowances. They do have more in common with benefts than tax for a number of reasons, but if you read the white paper for their introduction I linked above they are never referred to as a benefit. That's because the whole point of calling them "tax credits" was to try to take the stigma away from being "on benefits" which some snobs have.

zagfles

BigAunty wrote: »

It's amazing how many people post on this forum that they aren't getting any benefits, just tax credits and child benefit...

I don't remember seeing that many, though I guess it's just shorthand for "means tested benefits".

shedboy94

zagfles wrote: »

Does it have to be money, what about stuff the state provides free? Presumably free prescriptions/dentist are a "benefit"? If so then what about other NHS care, is seeing your GP without paying a "benefit"? Is having an operation to remove a tumour a "benefit"? What about state education, another benefit! Or going for a walk in the park maintained by the council, or down a street lit by them?

They aren't benefits if you have paid the taxes that fund them.

zagfles

shedboy94 wrote: »

They aren't benefits if you have paid the taxes that fund them.

What if you haven't paid any tax, are they benefits then? Or what if you've paid a bit of tax but not enough to fund your expensive cancer treatment, does it become a benefit then? What if you've paid more than enough tax to fund your tax credits and child benefit, do they then stop being a benefit?