Huge drop in child tax credit after big decrease in salary

sb44

My husband was made redundant from a £16,500 salary job, was unemployed for about four months then got another job which is only basic rate salary, £12,500.

We were getting about £60 per month in child tax credit, no working tax as that had stopped when redundant.

I have been on the HMRC site to calculate roughly what we will get in tax credits after the change in income.

Shocked to see it only brings up a total of £501.29!

According to those figures it will change from £60 per week to less than £10. Have tried to ring them but gave up after 25 minutes wait in the queue.

I would have thought that the child element at least would increase due to the drop of income of about £80 per week.

Brighty

Result from the calculator will be how much you get for the rest of this tax year, i.e 4.5 weeks, not a full year


Brighty

sb44

Brighty wrote: »

Result from the calculator will be how much you get for the rest of this tax year, i.e 4.5 weeks, not a full year


Brighty

Blimey!

Thank you very much for taking the time to reply.

I can feel a 'Doh!' coming on.

Am I correct in thinking that the amount of tax credits would increase if an income does drop?

sb44

blondebubbles wrote: »

Tax credits compares your current year income to your previous year income.

They will disregard the first £2500 of the decrease eg 2013/14 £16500 and 2014/15 £12500 - Tax credits will be based on £15000.

Many thanks for the info .

I got the figure wrong, he was on £17,500 but I suppose the extra £1k doesn't make any difference.