Benefits calculator include new budget?

Gavin234

When will all the benefit calculators show the new rules with the new budget?

When the first one has been updated can someone post it here?

Gavin234

Trying to work out how much my wtc will fall and when?

Are there any links available that put it all clearly for simple people like myself?

henlans

blondebubbles wrote: »

From April 2016, the government will reduce the level of earnings at which a household’s tax credits and Universal Credit award starts to be withdrawn for every extra pound earned. In tax credits, this point (known as the income threshold) will be reduced from £6,420 to £3,850. The equivalents in Universal Credit (work allowances) will be reduced to £4,764 for those without housing costs, £2,304 for those with housing costs, and removed altogether for non-disabled claimants without children. The government will also increase the rate at which a person’s or household’s tax credit award is reduced as they progress in work, by increasing the taper rate in tax credits from 41% to 48%.

The Budget will also reform tax credits to make them fairer and more affordable. On top of Child Benefit for every child, an out of work family with 5 children can currently claim over £14,000 a year in tax credits alone. The government believes that those in receipt of tax credits should face the same financial choices about having children as those supporting themselves solely through work.

The Budget will therefore limit support provided to families through tax credits to 2 children, so that any subsequent children born after April 2017 will not be eligible for further support. An equivalent change will be made in Housing Benefit to ensure consistency between both benefits. This will also apply in Universal Credit to families who make a new claim from April 2017.

In addition, those starting a family after April 2017 will no longer be eligible for the Family Element in tax credits. The equivalent in Universal Credit, known as the first child premium, will also not be available for new claims after April 2017. In Housing Benefit, the family premium will be withdrawn for new claims from April 2016, to ensure fairness between those who receive Housing Benefit and those who do not.

Child Benefit will continue to be paid at the same level for all children. The existing entitlement of families who remain in receipt of tax credits and Universal Credit will be unaffected by the reforms to limit support to 2 children and the abolition of the family premium. This will mean that those who already have larger families and have made plans on the basis of the current system will not lose out. The disabled child premia in tax credits and UC will also continue to be paid to all children with a disability.

I don't get working tax credits, I wonder if the child tax credit will change? or will that stay the same.

ymakesmile

henlans wrote: »

I don't get working tax credits, I wonder if the child tax credit will change? or will that stay the same.

This is about child tax credits isnt it?

henlans

ymakesmile wrote: »

This is about child tax credits isnt it?

I think its the working tax credit as that is based on earnings and the child tax credit is a single figure that does not change or go lower under 50k? I could be wrong.

Suarez

henlans wrote: »

I think its the working tax credit as that is based on earnings and the child tax credit is a single figure that does not change or go lower under 50k? I could be wrong.

Your thinking of Child Benefit.

Child Tax credits are based on income.

henlans

Suarez wrote: »

Your thinking of Child Benefit.

Child Tax credits are based on income.

Ohh.. I didn't know that..

cscz

i have worked out a comparison of our own tax credits award under current rates vs new rates from next year. this is based on 2 adults (1 disabled worker) and 2 children with income of £25702.

current award rates with income threshold of £6420 and withdrawl rate of 41%

total entitlement of working tax credits £7759.20
total entitlement of child tax credits £6108.54
total work & child tax credits £13867.74

income less threshold = £25702 - £6420 = £19282
reduction of £19282 at 41% per £1 = £19282 x 41 = £7905.62

total tax credits £13867.74 - total reduction at 41% = TOTAL AWARD £5962.12


so all you need to do is change the figures to get award from april 2016 with new threshold of £3850 and withdrawl rate of 48%.

so my 2016 onwards award will be...

total entitlement of working tax credits £7759.20
total entitlement of child tax credits £6108.54
total work & child tax credits £13867.74

income less threshold = £25702 - £3850 = £21852
reduction of £21852 at 48% per £1 = £21852 x 48 = £10488.96

total tax credits £13867.74 - total reduction at 48% = TOTAL AWARD £3378.78


difference is £2583.34 per year. equivalent to £49.67 per week... WOW:eek:

henlans

http://www.telegraph.co.uk/finance/personalfinance/how-budget-affect-me/11721785/Budget-2015-what-to-expect-for-income-tax-and-the-personal-allowance.html


You will be - £2056.20 worse off


Based on 2 adults and 2 kids

justaquestion

Hi,

I am finding this very confusing, so for a family with both parents not working (one parent on occupational pension +ESA) total income about £16k.

One disabled child who receives the disabled addition under tax credits.

Just wondering how much less tax credits would be next year?I think we get just over £500 a month at the moment.

Thanks

stassy23

the calculators I have found doesn't include income for carers allowance or if a child receives dla so I cant seem to work out how much we will be worse off.


anyone else found anything?