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

A_Flock_Of_Sheep

No I mean if I go to work tomorrow and request and hours drop to 16 hours as of 01 August 2015. So my salary drops from August this year. Surely I have to tell the TC office of that change? Do they not update the records in real time?

Or if I began making hefty voluntary payments to my occupational pension from 01 Aug 2015 my declared income would be reduced.

Sorry I am wholly confused now.

A_Flock_Of_Sheep

Or if I quit my job on Friday I would tell tax credits I have no income and then got a new job on 16 hours 2 weeks later I would start a fresh tax credits claim.

A_Flock_Of_Sheep

Who the hell voted for this shower of horse manure we have in power? Certainly wasn't one of my votes.

I hope whoever voted for them are now going to be thousands of pounds worse off. There can't be that many super rich toffs in the country who can afford this government. Many of the voters mush have been turkey voters for Christmas.

zagfles

A_Flock_Of_Sheep wrote: »

No I mean if I go to work tomorrow and request and hours drop to 16 hours as of 01 August 2015. So my salary drops from August this year. Surely I have to tell the TC office of that change? Do they not update the records in real time?

Or if I began making hefty voluntary payments to my occupational pension from 01 Aug 2015 my declared income would be reduced.

Sorry I am wholly confused now.

It's income over the tax year that counts, the disregard is from one tax year to the next.

Pension contributions reduce income for tax credits and they don't seem to have made any changes to that - so pension contributions are now more attractive to people on tax credits!

Candy2

glennamy wrote: »

Carers Allowance is part of DLA/PIP and is not subject to being frozen - more importantly it is not being made subject to income tax, which would have provided a massive headache...

Correct on WRAG Candy2, however once this date has passed, if someone goes into work and then subsequently has to stop work, they will be under the new rates...

Glenn

Thank you Glennamy, that's great. I was hoping that was the case.

A_Flock_Of_Sheep

zagfles wrote: »

It's income over the tax year that counts, the disregard is from one tax year to the next.

Pension contributions reduce income for tax credits and they don't seem to have made any changes to that - so pension contributions are now more attractive to people on tax credits!

I am still confused. If from August 2015 I chose to bolster my occupational Final Salary pension to the point where my income for TC purposes became £7,500 a year how would that affect my tax credit when on 01 August I call up and say my income is no longer £11,200 but has fallen to £7,500 a year?

Sorry to ask but I have spelled it out as simply as I can there I think.

Icequeen99

A_Flock_Of_Sheep wrote: »

I am still confused. If from August 2015 I chose to bolster my occupational Final Salary pension to the point where my income became £7,500 a year how would that affect my tax credit when on 01 August I call up and say my income is no longer £11,200 but has fallen to £7,500 a year?

Sorry to ask but I have spelled it out as simply as I can there I think.

And I have told you the answer - they would revise your tax credits based on 7,500 +2,500 disregard so 10,000.

However, if you moved from 11,200 to 7,500 in August 2015 your actual annual income for tax the year wouldn't be 7,500 that you report to tax credits it would be 4/12 x 11,200 + 8/12 x 7,500 so 8733. In that case they would base your award still on 11,200.

Edited to add - i see you are doing it with pension contributions now rather than lowering your hours. But the principle is still the same.

IQ

stassy23

im confused as to what we will lose as the calculators don't include carers allowance or if a child receives dla.


I tried to pm you zagfles as you seem the person in the know but your inbox is full apparently lol.

Candy2

Icequeen99 wrote: »

If you get income support then you won't be affected by the cuts to tax credits from April 2016.

IQ

Does this mean my tax credits won't be effected by the cuts either as I claim income related ESA? Thanks Icequeen99 just trying to get my head round if my income will drop or not. I get child tax credit only not WT as can't work at all.

Icequeen99

Candy2 wrote: »

Does this mean my tax credits won't be effected by the cuts either as I claim income related ESA? Thanks Icequeen99 just trying to get my head round if my income will drop or not. I get child tax credit only not WT as can't work at all.

yes, if you get IR ESA, IBJSA, Pension Credit or Income support you won't be affected except by the freeze in elements, so you won't see an increase unless you get tax credit disability elements.

IQ