Working tax credits and child tax credits

moneypuddle

My partner and I are unmarried with an 18month old son. Our little boy attends nursery 3 days a week. We have a childcare bill of £525 a month, and both claim the max £243 a month in childcare vouchers.

I work 4 days per week with a salary of £22k

My partners works full time. His salary varies but he's just got his P60 and he earnt £22.5k in the last year.

I have entered our details in the Tax Credits Calculator to see if we are entitled to any kind of CTC or WTC but it always comes up with an entitlement of £0.00. Even when I adjust the figures, we seem to be nowhere near getting anything. I have a few friends who have said they would have thought we would be entitled to something to help us out and I'm sure I've read about people with similar salaries getting some tax credits on top. Is there anyone else with similar salaries who does get either?

bellevie

Sounds about right to me, they look at combined income so £44k - I had the 40k figure in my head as cut off - but I might be wrong there. My friends are on around £30k between, they get a little help towards childcare.

Just added a bit re childcare vouchers but seen you already claim -sorry missed that bit!

onlyroz

I might be wrong but I don't think you can claim child are vouchers and ctc - I think it's one or the other.

shegirl

I think those who get tax credits, with that income,are getting it for childcare.You already have that sorted.

You have a good income,childcare done,there isn't likely to be any benefit required on top

FBaby

shegirl wrote: »

I think those who get tax credits, with that income,are getting it for childcare.You already have that sorted.

You have a good income,childcare done,there isn't likely to be any benefit required on top

To be fair, not in the same way than those who get tax credits. TC are on top of income, in the case of vouchers, these are deducted from your income. Vouchers are only good from a perspective of tax, but they are not free.

Saying that, indeed, your joint income will be too high...but you can join the group of parents in your situation, who count the months until the child is entitled to the nursery grant, then who start school, and then who finally don't need any childcare any longer, and you suddenly feel like you've won the lotery

shegirl

FBaby wrote: »

To be fair, not in the same way than those who get tax credits. TC are on top of income, in the case of vouchers, these are deducted from your income. Vouchers are only good from a perspective of tax, but they are not free.

Saying that, indeed, your joint income will be too high...but you can join the group of parents in your situation, who count the months until the child is entitled to the nursery grant, then who start school, and then who finally don't need any childcare any longer, and you suddenly feel like you've won the lotery

True,but they are good for tax and they have the money for it.Often people ask about TC for childcare because their wages,one of them,wouldn't cover it/would be taken up fully

FBaby

However there are downfalls with them you wouldn't experience with TC like the fact that if you go on maternity leave your maternity pay will be considered on your income after vouchers are deducted hence receiving less. Same with redundancy. Because of both I chose at the time not to use them frustrating as I didn't get pregnant nor got made redundant!

AnnieO1234

IIRC tax credits with one child aren't applicable at quite a low wage. I believe at around £27k household they kick back in for two children. The claims are also adjusted for disabilities and a few other things. You're given negative numbers effectively that reduce your income.

The levels were reduced in recent years also.

Unfortunately it means a lot of well meaning friends who do have (or did have) tax credits really genuinely believe you should be entitled and try to convince you otherwise. But no, on the figures you have stated, you would not be entitled.

You may need to consider whether one of the salaries versus the cost of child care needs sacrificing to part time or even not at all.

Xx

onlyroz

FBaby wrote: »

However there are downfalls with them you wouldn't experience with TC like the fact that if you go on maternity leave your maternity pay will be considered on your income after vouchers are deducted hence receiving less. Same with redundancy. Because of both I chose at the time not to use them frustrating as I didn't get pregnant nor got made redundant!

On the other hand your employer has to keep on paying for the vouchers when you go on maternity leave if your salary isn't otherwise enough to cover them. So when I went on maternity leave with my second child I got SMP plus the £243 in childcare vouchers.

moneypuddle

onlyroz wrote: »

On the other hand your employer has to keep on paying for the vouchers when you go on maternity leave if your salary isn't otherwise enough to cover them. So when I went on maternity leave with my second child I got SMP plus the £243 in childcare vouchers.

Oh interesting thanks OnlyRoz. So you mean your SMP would have been less than £243 a month? I assume mine would be the usual £135ish a week so around £585 a month. So I take it my childcare vouchers would be taken out of that leaving me around £340 a month. Jeez! Better not have another baby any time soon

onlyroz

moneypuddle wrote: »

Oh interesting thanks OnlyRoz. So you mean your SMP would have been less than £243 a month? I assume mine would be the usual £135ish a week so around £585 a month. So I take it my childcare vouchers would be taken out of that leaving me around £340 a month. Jeez! Better not have another baby any time soon

No, they can' take the vouchers out of SMP because it's not "salary", it's a benefit. So you'll get £585 and your employer will have to continue paying the vouchers.