Tax credits

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Can any of the experts please put, in very simple terms, the effects of the budget on tax credits from April 2016.

e.g.
If someone is on an income based benefit will their child tax credits remain unchanged?

For everyone else, even if there are disabled child or adult, there will be a loss?

I know I am probably being too simplistic but just wondered if there was an easy way of saying which groups will be totally unaffected and whether all others will have a loss.

Would be very grateful if you could summarise in this way. The Telegraph calculator seems to be very good - would you agree?


Many thanks.

Comments

  • Icequeen99
    Icequeen99 Posts: 3,775 Forumite
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    pmlindyloo wrote: »
    Can any of the experts please put, in very simple terms, the effects of the budget on tax credits from April 2016.

    e.g.
    If someone is on an income based benefit will their child tax credits remain unchanged?

    For everyone else, even if there are disabled child or adult, there will be a loss?

    I know I am probably being too simplistic but just wondered if there was an easy way of saying which groups will be totally unaffected and whether all others will have a loss.

    Would be very grateful if you could summarise in this way. The Telegraph calculator seems to be very good - would you agree?


    Many thanks.

    Telegraph seems most accurate so far - but I haven't tested it for a range of examples.

    Anyone on means-tested benefits (IBJSA, IRESA, Pension Credit or IS) or anyone with income below £3850 (if WTC eligibility) or £12125 (if CTC only eligibility) are not affected.

    If you are entitled to CTC and have income above £12125 you will be worse off

    If you are entitled to WTC and CTC and have income above £3850 you will be worse off.

    ** Note that the 12125 CTC threshold has not been announced and therefore it seems there is confusion about whether it will reduce. My opinion is that it will because it has always tracked the WTC threshold - really the Treasury or HMRC just need to confirm it**

    IQ
  • pukkamum
    pukkamum Posts: 3,942 Forumite
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    We are over £1600 per year worse off due to the child tax credit tapering changes, seems the middle/low earners will be the ones hit as per usual!
    I don't get nearly enough credit for not being a violent psychopath.
  • pmlindyloo
    pmlindyloo Posts: 13,050 Forumite
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    Icequeen99 wrote: »
    Telegraph seems most accurate so far - but I haven't tested it for a range of examples.

    Anyone on means-tested benefits (IBJSA, IRESA, Pension Credit or IS) or anyone with income below £3850 (if WTC eligibility) or £12125 (if CTC only eligibility) are not affected.

    If you are entitled to CTC and have income above £12125 you will be worse off

    If you are entitled to WTC and CTC and have income above £3850 you will be worse off.

    ** Note that the 12125 CTC threshold has not been announced and therefore it seems there is confusion about whether it will reduce. My opinion is that it will because it has always tracked the WTC threshold - really the Treasury or HMRC just need to confirm it**

    IQ

    Thank you so much for this.

    I know everyone will want to know how much worse off they are but it does help to know the basics.

    Will look out for the announcement if the CTC threshold as this may change things.

    Again, thank you :beer:
  • Icequeen99
    Icequeen99 Posts: 3,775 Forumite
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    There is nothing provided to HMRC staff stating there has been a CTC only threshold change.

    It doesn't normally come out until the rates are published. The CTC threshold was reduced in 2011 but it wasn't announced then either.

    I am going to stop banging on about it now - it will just be a wait and see.

    IQ
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