two different jobs at 14 hours and 10 hours

naav

Hi there

That does seem a bit high though, I would have thought it would be about £5000. Did you put your 12/13 and 13/14 income into the calculator? Or just use the £16981?

I used £16981.

Is there a reason why you need to reduce your hours/income?

Oh, it's just personal reasons...

Thank you

jamesmorgan

It is also worth noting that none of the calculations above have included pension payments. Income for tax credit purposes is net of pension payments. This means that every £1 paid into a pension saves not only 20% income tax, but also 41% tax credit withdrawal. If your total income falls below £15275 you also qualify for an NHS Tax Credit Exemption Certificate, which gives you free prescriptions, dental treatment and opticians.

So, for example if you paid £1706 into a pension (£16981-£15275) this would only cost you £665 in lost net income. Depending on your use of NHS facilities, much of this could be recouped via the Tax Credit Exemption Certificate eg

Dentists - £20/appointment * 2/annum * 2 adults = £80
Opticians - £20 eye test + £67 glasses voucher * 2 adults = £194
Prescriptions - £104 annual payment * 2 adults = £208

Total saving = £482

Total cost of £1706 pension payment is £183 (£665-£482). The NHS costs would clearly vary by individual and could easily be lower (or higher esp if lots of dental work required)

burnsguitarman

Surely you're priority should be to work to earn enough maintain your family without ANY benefits, if you deliberately reduce your income you should get no help in my opinion. If I were you I would be trying to increase my hours to full time!
It's about time this country got its act together!

xylophone

Oh, it's just personal reasons...

Could they possibly have anything to do with benefits and tax credits?:rotfl:

zagfles

jamesmorgan wrote: »

It is also worth noting that none of the calculations above have included pension payments. Income for tax credit purposes is net of pension payments. This means that every £1 paid into a pension saves not only 20% income tax, but also 41% tax credit withdrawal. If your total income falls below £15275 you also qualify for an NHS Tax Credit Exemption Certificate, which gives you free prescriptions, dental treatment and opticians.

So, for example if you paid £1706 into a pension (£16981-£15275) this would only cost you £665 in lost net income. Depending on your use of NHS facilities, much of this could be recouped via the Tax Credit Exemption Certificate eg

Dentists - £20/appointment * 2/annum * 2 adults = £80
Opticians - £20 eye test + £67 glasses voucher * 2 adults = £194
Prescriptions - £104 annual payment * 2 adults = £208

Total saving = £482

Total cost of £1706 pension payment is £183 (£665-£482). The NHS costs would clearly vary by individual and could easily be lower (or higher esp if lots of dental work required)

Do you know if the disregard is accounted for in the healthcare costs threshold? For instance if the OPs income next year was £15,000, tax credits would use an income of £17,500 for his claim due to the disregard for income falls. Would he get healthcare costs as his actual income would be £15k or would the disregard apply to the health costs threshold too?

zagfles

xylophone wrote: »

Could they possibly have anything to do with benefits and tax credits?:rotfl:

If it is he clearly hasn't got a clue! If the 10 hours for his Dad is a fake job to get more tax credits it'll backfire as it'll actually get him less in tax credits, not more:rotfl:

Icequeen99

blondebubbles wrote: »

I'm sure the figure used when deciding is the figure the claim is based on so the disregard applies. See pg10 where it says the yearly income used for tax credit purposes

http://www.nhs.uk/NHSEngland/Healthcosts/Documents/HC12%20April%202013.pdf

Can't find anything else to back this up though

So you're saying that when the disregard was £25,000 that in the year your income went up (say by 20,000) you still got the health exemption?

I am sure I have looked up the legislaton on this before, certainly on free school meals, i just can't remember what it said! :rotfl:

IQ

Icequeen99

blondebubbles wrote: »

I'm not saying anything, just posting what the NHS says. I did say I can't find any other guidance to back this up. Feel free to post if you find it.

I realised that, i was just clarifying what you had posted from the NHS and if I had understood what you were saying in the context of rises rather than falls. Text does't quite convey things as they are in my mind when I type them!

I did a quick google but can't find any health costs regs that are immediately obvious.

IQ