MSE News: Summer Budget 2015: Millions to face benefit cuts

gsdsian

It does, I'm stuck between a rock and a hard place. Can't manage to work more hours, but in order to continue living I have to work more hours. That's if I can even get more regular hours in work.

My worry is by pushing myself with the extra hours that I end up wrecking my health again and not being well enough to work at all. I don't know what the answer is.

starM

Hi, Can anyone work out how much I will loose out on my Tax credits.

I earn 25k and my wife is a housewife. We have 2 childrens - no disabilities.

WIll help if you can also explain the working out of your calculations.

Thanks
MS

Icequeen99

starM wrote: »

Hi, Can anyone work out how much I will loose out on my Tax credits.

I earn 25k and my wife is a housewife. We have 2 childrens - no disabilities.

WIll help if you can also explain the working out of your calculations.

Thanks
MS

£2534

You will lose £1233 because of the change of the threshold and then 7% of your earnings over £6420.

Your new award is

Basic WTC 1960
Couple element 2010
30 hour 810
Child x 2 5560
Family 545

TOTAL 10885

Reduction for income (25000-3850)x48% = 10152 leaving entitlement of 733.

This year you should be getting around 3267.20.

IQ

Lioness_Twinkletoes

mel48rose wrote: »

Thanks for your kind help. Why are they making people feel like they would be better off not working? I don't understand it at all. It's gonna be a long four years I think.

It's not the Government policies at fault here, it is your attitude. You are not better off working but you do need to work more hours in order to support your family.

mel48rose

Lioness_Twinkletoes wrote: »

It's not the Government policies at fault here, it is your attitude. You are not better off working but you do need to work more hours in order to support your family.

Thanks for you advice. Unfortunately I only wanted someone to work figures out for me. So buzz off and go judge someone else you know nothing about :rotfl:

mejaa

I did read somewhere possibly on this forum that if you work extra hours and assuming you pay tax after threshold goes up next year, every £1 you earn, 47p gets taken off tax credits, 12p national insurance and 20p income tax, so for every £ your earning working more hours, you will be better off by 21p, so on new minimum wage of £7.20, that means £1.40 or thereabouts.
However this will be higher for those that don't earn enough to pay tax, they will be 41p per pound better off.
Hope this makes sense.

Icequeen99

mejaa wrote: »

I did read somewhere possibly on this forum that if you work extra hours and assuming you pay tax after threshold goes up next year, every £1 you earn, 47p gets taken off tax credits, 12p national insurance and 20p income tax, so for every £ your earning working more hours, you will be better off by 21p, so on new minimum wage of £7.20, that means £1.40 or thereabouts.
However this will be higher for those that don't earn enough to pay tax, they will be 41p per pound better off.
Hope this makes sense.

It is 48p tax credits taper.

That is true, but if you get other benefits like housing benefit they may compensate some towards the loss of tax credits which would affect your position

Also, tax credits won't be impacted initially after a rise to 7.20 because of the income disregard.

IQ

mejaa

Ooops don't know where I got 47p from.
Sorry

Bella56

OK, I know I'm not the brightest crayon in the box but can someone answer my silly question? All these tax credits calculators saying I'll be worse off if my income raises - does this mean, say, £1400 worse off just in tax credits (but I'll be earning more so my income will go up) or does it literally mean, if I earn more, I will be worse off overall???

zagfles

Bella56 wrote: »

OK, I know I'm not the brightest crayon in the box but can someone answer my silly question? All these tax credits calculators saying I'll be worse off if my income raises - does this mean, say, £1400 worse off just in tax credits (but I'll be earning more so my income will go up) or does it literally mean, if I earn more, I will be worse off overall???

No, you're not usually worse off overall by earning more. There are some circumstances in tax credits where you can be worse off earning more but it's not the norm.

What calculator are you using?