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Tax credit calculators for new budget 2016/17

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Comments

  • Ed27
    Ed27 Posts: 2 Newbie
    Hi - looking for help calculating the reduction in CTC we will see next year.
    Married - joint income 42000, 4 children, 1 child receives the disability and severe disability elements, i work full time and Wife works 12 hours a week.
    My thanks in advance!
  • ymakesmile
    ymakesmile Posts: 505 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    What are all the elements for a couple with 2 kids? Would it be the £10885 minus the £2010 lone parent figure?
  • Icequeen99
    Icequeen99 Posts: 3,775 Forumite
    Awesome. Don't flame me but it does seem that the incentive to pay into a pension is greater again. Every £1 I pay in going to get an additional 20p tax added and 48p added to my tax credit claim?
    Seems too good to be true? Have I worked that out correctly.

    Low mortgage, old car, no debts and frugal lifestyle so could afford it.

    How is your pension taken from your salary?

    IQ
  • Currently have DB TPS pension but want to set up additional personal pension alongside it. Could make payments from bank account or through payroll I think. Have posted on pension forum for help with selecting pp.

    Made a lump sum payment to pension a few years back and I submitted the proof to tax credits and they reduced my income by the amount of the payment.
  • northerntwo1
    northerntwo1 Posts: 1,465 Forumite
    Very prudent to take the tax advantages if your income allows it. You are never going to get a better rate even the higher paid don't get that tax break.
  • ymakesmile
    ymakesmile Posts: 505 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    No it would be the same as the couple element is also £2010.

    Thank you for that :)
  • cifpower
    cifpower Posts: 6,502 Forumite
    My annual award of around £1800 will disappear from April (single, 34, work 40 hours, £17650pa, disability element due to LRM DLA).

    So this will all be saved in an ISA and will be used for a 13 night holiday in India early 2017.
  • Ed27
    Ed27 Posts: 2 Newbie
    I'd estimate your award for next year as £2548 (the disability element rates haven't been released yet though so basing on current figures).

    Hi Blondebubbles,

    Thank you so much for your swift reply - I feared we would see a significant reduction.
    Its going to have a impact on us and how we care for our Daughter who has complex needs - The hidden costs of caring for a child with quite profound disabilities and medical needs cannot be understated, tax credits provided a life line for us in this respect which, it appears, will now largely go.

    My thanks again for your reply and calculation.
  • SkyeKnight
    SkyeKnight Posts: 513 Forumite
    Maybe not. It will depend on what the class as a "new claim".

    If you are not receiving payments due to income, your claim is still live on the system, it doesn't end.

    I guess that could be one way to interpret it. The government site (https://www.gov.uk/government/publications/summer-budget-2015-hm-revenue-and-customs-overview/summer-budget-2015-hm-revenue-and-customs-overview) says:

    "The Child Element of tax credits and Universal Credit will no longer be awarded for third and subsequent children born after 6 April 2017. This will also apply to families claiming Universal Credit for the first time after April 2017. Households who have been in receipt of tax credits or Universal Credit, with an interruption of less than 6 months, will be protected."

    The words "in receipt of tax credits" makes it sound to me like you actually have to be receiving something.
  • Icequeen99
    Icequeen99 Posts: 3,775 Forumite
    Yes I've read that too, it isn't very clear. I'm sure it will come out in more detail at the time.

    The legislation has been published, or at least some of it has in the welfare reform and work Bill.

    IQ
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