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Are there any cuts to CTC only?

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As in the title, are the cuts to WTC only? Or is CTC only claims being affected too?


Thanks
«1

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  • justaquestion
    justaquestion Posts: 737 Forumite
    edited 10 July 2015 at 1:14PM
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    Still trying to figure it all all, so in essence for a couple not working but in receipt of ESA (CB) and pension, for one child we can have a income of £16105 and full tax credits are payable, but likely to change.


    I have put some figures in the official government calculator for this year and it doesn't matter for example if a persons income (for a family of two not working with one child) whether their income is £5k or £16k tax credits for remainder of year is still the same.


    As threshold is going down from £6420 to £3850 a reduction of £2570 I though that then £16105-£2570=£13535 might be the point that tax credits would start to be reduced.


    It would be very helpful if the government would set in place a calculator for next year, but somehow I can't see them doing that.


    Saying that I probably need to read up on how tax credits are actually calculated but cant find anything that is reasonably easy to understand.
  • Sazzybo39
    Sazzybo39 Posts: 12 Forumite
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    Thanks that's a relief. I still can't work it out. How I work it out we wouldn't get anything even now never mind next year. Im flummoxed by it all! A calculator would be sooo good right now!
  • scottambrose
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    or earn too much for wtc and only get ctc?
  • Pedent
    Pedent Posts: 150 Forumite
    First Anniversary Combo Breaker
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    or earn too much for wtc and only get ctc?

    No, higher earnings doesn't make you a CTC only case, just a case where all your WTC is tapered away.
  • Sazzybo39
    Sazzybo39 Posts: 12 Forumite
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    From your previous posts, you and your partner both work so you wouldn't be a CTC only case.

    A CTC only case is for those who don't work or don't work sufficient hours.


    Ah yes. My award always has on WTC but then takes it all away due to income. They only take £2000 away due to income on CTC at the moment so that's why it confuses me as working it out we shouldn't get anything at all even now. Role on the calculators coming online!
  • Sazzybo39
    Sazzybo39 Posts: 12 Forumite
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    I'd have estimated you'd lose about £3800.

    Keep in mind that the tax credit staff don't know about these changes in advance so it is a bit soon for a new calculator to be updated.


    Thank you blondebubbles :-). When I work it out I get loosing £15k which we don't even get so I'm going massively wrong somewhere!:)
  • Tigsteroonie
    Tigsteroonie Posts: 24,954 Forumite
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    This is where I am confused too.

    Okay, so I accept that we have both a WTC & CTC award, but that the WTC is entirely whittled away to zero due to the level of our income. Reducing the WTC threshold isn't going to have any effect on that, once it's zero, it's zero.

    From what I read in the budget document, I couldn't see that the CTC income threshold was being changed - if that is wrong, could someone point me to the correct link and new threshold?

    If the CTC isn't being changed, then the only difference is the taper rate changing from 41% to 48%. So we will lose an additional £70 for every £1000 of our income above the threshold.

    Is my thinking correct? I'm trying to work out why others of similar income, who don't get any WTC, are being told that they'll lose £3k.
    :heartpuls Mrs Marleyboy :heartpuls

    MSE: many of the benefits of a helpful family, without disadvantages like having to compete for the tv remote

    :) Proud Parents to an Aut-some son :)
  • Tigsteroonie
    Tigsteroonie Posts: 24,954 Forumite
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    edited 10 July 2015 at 8:19PM
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    Because of the way the legislation is written, the CTC threshold should have changed however it hasn't been announced.
    So it's an assumption? Now I understand.

    Is he allowed to change that threshold if he hasn't told Parliament that he going to do so? :D

    eta. Have now found IQ's comments on this, it was in the fourth thread I viewed on the topic.
    :heartpuls Mrs Marleyboy :heartpuls

    MSE: many of the benefits of a helpful family, without disadvantages like having to compete for the tv remote

    :) Proud Parents to an Aut-some son :)
  • justaquestion
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    The £3850 is for WTC only. It won't apply to anyone not eligible to WTC.


    I apologise for my seemingly total inability to understand this change to CTC and my endless questions.


    So at the moment does it seem that that a couple not working, with a disabled child getting the severe disability component of CTC, with an income of £16000 (ESA Contribution based, and an occupational pension, I currently pay tax on that) may not have a reduction on CTC next year?


    Or maybe as everything is not totally clear, I have to wait to see.


    Thanks again.
  • starM
    starM Posts: 1,464 Forumite
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    Hi, I have 2 childrens - I am working full time earn 25k - my wife is a housewife. How much we will loose out on Child Tax Credits?

    Thanks
    MS
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