tax credits

benny_boy

hi my first ever post on this forum so thanks in advance for any help
i am aware of the changes to the taper amount coming in april 2016 and the income thresholds falling at the same time. this will affect us big time (£22500 salary and two kids)
my question is will my tax credits be falling in 2016 or will it be 2017? the reason i ask is tax credits are paid based on the earnings the year before.so will the taper and threshold changes affect next years payments or the year afters?

Icequeen99

benny_boy wrote: »

hi my first ever post on this forum so thanks in advance for any help
i am aware of the changes to the taper amount coming in april 2016 and the income thresholds falling at the same time. this will affect us big time (£22500 salary and two kids)
my question is will my tax credits be falling in 2016 or will it be 2017? the reason i ask is tax credits are paid based on the earnings the year before.so will the taper and threshold changes affect next years payments or the year afters?

It will be affected from April 2016 because the calculation will change then.

I think you are thinking of the income disregards, but this is different.

IQ

benny_boy

thanks icequeen ,i expected so.its going to be one tough year next year i have just taken out a mortgage under which our tax credits were taken into consideration as income,plus i work in public sector lol so no decent pay rise for over a decade by the time the tories have finished.
i have done three calculators . one says i will lose over £2000,the other two say i will lose about £1200
could you tell me which are correct. like i mentioned before i earn 22500,my wife is currently not working and we have two kids (2 and 7)
thanks again for your help

Icequeen99

benny_boy wrote: »

thanks icequeen ,i expected so.its going to be one tough year next year i have just taken out a mortgage under which our tax credits were taken into consideration as income,plus i work in public sector lol so no decent pay rise for over a decade by the time the tories have finished.
i have done three calculators . one says i will lose over £2000,the other two say i will lose about £1200
could you tell me which are correct. like i mentioned before i earn 22500,my wife is currently not working and we have two kids (2 and 7)
thanks again for your help

Assuming no disabilities and no childcare costs I make it £2360 lost.

IQ

benny_boy

thanks again icequeen.i cant fathom how the other two calculators can be so wrong (bbc and guardian). the telegraph one said a similar amount to what you have just told me.
that's the family holiday to Whitby cancelled next year ,although that will only cover half of it
been dreading this moment from the minute the tories got voted in.worked 22 years ever since i left school,my wife the same till she got made redundant last year and they say thy are the party of the working people . they make me sick
thanks again for all your help

Icequeen99

benny_boy wrote: »

thanks again icequeen.i cant fathom how the other two calculators can be so wrong (bbc and guardian). the telegraph one said a similar amount to what you have just told me.
that's the family holiday to Whitby cancelled next year ,although that will only cover half of it
been dreading this moment from the minute the tories got voted in.worked 22 years ever since i left school,my wife the same till she got made redundant last year and they say thy are the party of the working people . they make me sick
thanks again for all your help

The BBC and Guardian calculators are powered by the same base calculator.

They have misunderstood how the thresholds work in tax credits which is why the figures are wrong.

IQ

benny_boy

sounds about right for the bbc