Tax credits (and terrible advice)

tommytynan123

[FONT=Arial, sans-serif]If possible just checking some facts regarding Child Tax Credits.[/FONT]
[FONT=Arial, sans-serif]Son (26) / Partner (25) and 1 baby (16 months). [/FONT]
[FONT=Arial, sans-serif]2013/14 Son got £16600 gross (>30 hours work) and partner does not work. No childcare costs. In private rented. During 2013/14 they received Child Benefit and about £380pcm in tax credits.[/FONT]
[FONT=Arial, sans-serif]Son has been promoted and from 1st May income will be £21000[/FONT]


[FONT=Arial, sans-serif]Partner talked to tax people who said ''if you earn more than £17K during 14/15 (which he will) then you will lose all your tax credits !!'' [/FONT]
[FONT=Arial, sans-serif]I think that advice is absolute b*****ks.[/FONT]


[FONT=Arial, sans-serif]I've done calculator on HMRC and this site and they indicate about £3800 per annum for 2014/15 based on income for 2013/14. [/FONT]
[FONT=Arial, sans-serif]Sound about right ?[/FONT]

FBaby

What they meant is that they would lose the working element, but they will still be entitled to the child element.

zagfles

tommytynan123 wrote: »

[FONT=Arial, sans-serif]If possible just checking some facts regarding Child Tax Credits.[/FONT]
[FONT=Arial, sans-serif]Son (26) / Partner (25) and 1 baby (16 months). [/FONT]
[FONT=Arial, sans-serif]2013/14 Son got £16600 gross (>30 hours work) and partner does not work. No childcare costs. In private rented. During 2013/14 they received Child Benefit and about £380pcm in tax credits.[/FONT]
[FONT=Arial, sans-serif]Son has been promoted and from 1st May income will be £21000[/FONT]


[FONT=Arial, sans-serif]Partner talked to tax people who said ''if you earn more than £17K during 14/15 (which he will) then you will lose all your tax credits !!'' [/FONT]
[FONT=Arial, sans-serif]I think that advice is absolute b*****ks.[/FONT]


[FONT=Arial, sans-serif]I've done calculator on HMRC and this site and they indicate about £3800 per annum for 2014/15 based on income for 2013/14. [/FONT]
[FONT=Arial, sans-serif]Sound about right ?[/FONT]

Yes, it is [FONT=Arial, sans-serif]absolute b*****ks.[/FONT] With one child he can earn up to £26k, in fact up to £31k this tax year as the first £5k rise in disregarded as above.

I'd put in a complaint about the advice (if you have date/time of call). Someone so clueless shouldn't be working for the helpline, or should be properly trained at least. Sounds like the sort of tripe you'd expect the read in the Mirror!

zagfles

FBaby wrote: »

What they meant is that they would lose the working element, but they will still be entitled to the child element.

Even that's wrong as they'd still get some WTC on £17k, the cut-off is about £18k, and they'd even get some on income under £23k this year due to the disregard.

Icequeen99

zagfles wrote: »

Even that's wrong as they'd still get some WTC on £17k, the cut-off is about £18k, and they'd even get some on income under £23k this year due to the disregard.

And technically, no income loses the working tax credit elements. If you work you get them included in the calculation. You might not actually be paid in WTC, but you still get the elements included in your award, and getting extra WTC elements can result in an increase in Child Tax Credit.

Edited to add: Zagles I was trying to quote FBaby and your response, not suggesting yours wasn't accurate!

IQ