How will tax credit cuts effect me?

sudored

We are a family of 5 with 3 young children

Wife works 33 hours a week and earns
12000 a year

I work 16 hours a week and earn
6000 a year

We currently get £10000 a year child tax credits including disability element for me.

Will it effect us much?
We dont get rent or ct benefits.

henlans

forget the disability element as that wont be touched.. it might go up


but


You will be -£1916.20 worse off


if you go by this


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


but that shows you getting £8917.20 in CTC without disability element


that's a rough figure.

Icequeen99

henlans wrote: »

forget the disability element as that wont be touched.. it might go up


but


You will be -£1916.20 worse off


if you go by this


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


but that shows you getting £8917.20 in CTC without disability element


that's a rough figure.

That calculator is not accurate as it doesn't cover tax credits fully with all of the elements.

OP: Your disability element is exempt from the freeze, so will rise slightly but it will be part of the overrall cut to your award because of the change to taper and thresholds.

IQ

sudored

Thank you both.

So about £36ish pounds a week worse off.
Probably less after minimum wage rises?
A lot better than i feared it would be will still have to be some sacrifices but not major.

If i was to ask work for 5 hours more a week from next year would that effect my tax credits much? (would they go down?) to offset some off the loss of tax credits?

Icequeen99

sudored wrote: »

Thank you both.

So about £36ish pounds a week worse off.
Probably less after minimum wage rises?
A lot better than i feared it would be will still have to be some sacrifices but not major.

If i was to ask work for 5 hours more a week from next year would that effect my tax credits much? (would they go down?) to offset some off the loss of tax credits?

The minimum wage rise will eventually affect your tax credits - so each £1 will see a 48 p reduction in your tax credits.

Your tax credits may not be affected immediately, because their will still be a 2500 disregard for rises in income, but eventually they will be reduced by the 48% taper.

IQ

Icequeen99

blondebubbles wrote: »

Has the disregard changed?

Yes, 5000 will reduce to 2500 for income rises.

CTC only threshold down to £12,125.

IQ

bspm

sudored wrote: »

Thank you both.

So about £36ish pounds a week worse off.
Probably less after minimum wage rises?
A lot better than i feared it would be will still have to be some sacrifices but not major.

If i was to ask work for 5 hours more a week from next year would that effect my tax credits much? (would they go down?) to offset some off the loss of tax credits?

Couldn't you have asked your company to increase your hours before the budget?

specialboy

bspm wrote: »

Couldn't you have asked your company to increase your hours before the budget?

Why do that, they would have to work more for the same money, thus is why tax credits need abolishing reforming.

sudored

bspm wrote: »

Couldn't you have asked your company to increase your hours before the budget?

Its not really something I want to do, I am/was not well enough to work 16 hours a week but have been forced into work by the government.
Dont get me wrong its getting easier and I am sure in the long run I will come to appriciate being back at work, for the first 2 months my mental health got worse being in work but am coming threw that now therw a combination of cbt and massively increasing my medication which I had to beg my doctor to do just to be able to cope.
16 hours is fine for now but next year im sure I will feel better about increasing my hours.

sunshine1980

I posted the below on another thread but not sure if anyone on here can help?


Hi not sure if anyone can help. I am a single mum of a 4 year old, earning £10450pa. I went on one of the calculators and it said I would be £1500 a year worse off. However as I claim some housing benefit I had read that HB will go up to cover roughly 60% of the loss of WTC. So I would be around £50 per month worse off. Is this right?


However I have read the following in the Independent:


"From April 2016 the level at which a household's tax credits are withdrawn for every extra pound earned will be reduced from £6420 to £3850. For Universal Credit which is replacing six working life benefits including tax credits, the figures will be £4764 for those without housing costs and £2304 for those with housing costs".


So I will be even more worse off when put on UC? If so can anyone work out how by how much? I have worked out I will be an extra £742 worse off when on UC so altogether £2242 worse off a year?


I'm not moaning about the cuts I am just trying to work out my finances that's all and just dealing with it.


Thanks in advance for any help

nannytone_2

curty510 wrote: »

Couldn't you have asked your company to increase your hours before the budget?
by bspm


I bet it's not. If hours are availibale to work, then work them so you can earn more money. But i don't blame you, it's not your fault.

Up unitl yesterday the benefit nanny handout state we lived in made created this option for people. But that ship has now sailed. I for one voted Tory for this exact reason!

the OP receives the disability element of tax credits and is recognised as being disabled.
if they are managing 16 hours a week, they are tryingQ
they don't appear to be 'playing the system', yet you want them to put their health at risk so you feel they're doing as they should?