Tax credit calculators for new budget 2016/17

Icequeen99

blondebubbles wrote: »

So can you answer the question?

If your award is nil due to income but changes after 6 months due to a reduction in income, are you then subject to the 2 children cap?

Not definitively - i think is going to be covered in primary legislation. But so far everything in the Bill talks about a claim for CTC - so a nil award is still a claim for the elements and the elements are still awarded. Depends how the define 'prescribed exceptions' I suppose.

IQ

ericax

Most peoples perceptions of tax credits and families on benefits are completely wrong.

I am a single mum working 21 hours a week. The cost of childcare is horrendous. I WANT to earn more, and I am more than willing to work full time hours to be able to do that. BUT it is a fact ( I have spoken to tax credits, the council, citizens advice) I would be WORSE off working full time, as childcare costs would be unaffordable. Tax credits even told me if I dropped to 16 hours I'd be 'better off' - so much for making work pay! I would actually be £60 worse off a month, and I'm sorry but I don't believe anyone who says they would work an extra 16 hours a week to bring home £60 less a month.

Regarding disposable income - I have none. I live off £125 a month (for food, and other necessities). If the new budget stands, I will be losing £100 of this. My daughter and I will be living off £25 a month? How is this realistic? I'm petrified of what will happen come April. I'm desperately looking for cash in hand work or a higher wage job (again tax credits tell me i need to be earning at least £21,000 a year in a full time job to be any better off)

FBaby

I would actually be £60 worse off a month, and I'm sorry but I don't believe anyone who says they would work an extra 16 hours a week to bring home £60 less a month.

How old is your child? Don't look at it from the perspective of 'now and now only' but the future too. People who work full-time and earn too much for tax credits also find the years of paying for full-time childcare very difficult. That's how it is. However, if you look at it as an investment, then it is not so bad because you can see then how much better you will be once the child goes to school.

I went through this as a single parent, worked full-time and had less disposable income than if I'd been on benefits, but then the time came when both started school, so although still paying for wrap around care and holiday clubs, I was better off. Then I finally got to the stage of not needing to pay for any childcare at all. During that time, I got promoted and so my income increased. I can now look back and see how the investment in working full-time paid off, even if at time I wondered why I bothered.

bloolagoon

ericax wrote: »

Most peoples perceptions of tax credits and families on benefits are completely wrong.

I am a single mum working 21 hours a week. The cost of childcare is horrendous. I WANT to earn more, and I am more than willing to work full time hours to be able to do that. BUT it is a fact ( I have spoken to tax credits, the council, citizens advice) I would be WORSE off working full time, as childcare costs would be unaffordable. Tax credits even told me if I dropped to 16 hours I'd be 'better off' - so much for making work pay! I would actually be £60 worse off a month, and I'm sorry but I don't believe anyone who says they would work an extra 16 hours a week to bring home £60 less a month.

Regarding disposable income - I have none. I live off £125 a month (for food, and other necessities). If the new budget stands, I will be losing £100 of this. My daughter and I will be living off £25 a month? How is this realistic? I'm petrified of what will happen come April. I'm desperately looking for cash in hand work or a higher wage job (again tax credits tell me i need to be earning at least £21,000 a year in a full time job to be any better off)

My salary take home was around 1900 per month. Childcare at worst case was £1600 per month. So I worked 40 hours plus a week for £300 a month. I suspect you get more than that?

It's not great thinking you work for nothing but long term its worth it. i have gone from £1600 per month to £100 a month so long term it's worth it.

Alice312

Each working family is going to suffer.
My disposable income will be £205 a month.
That has to clothe and pay for activities for 3 people, to me that is absolutely nothing and I'm not sure how I'll do it, but to others it's quite a lot of money and I have been spoilt, because it could be way way way worse.

FBaby

£205 a month disposable income for 3, when that is supposed to include things like clothing and activities is in my views very low, but I would question why it is that low, ie. how much is spent on rent/mortgage, does the budget include loans repayments, does it include childcare etc...

Alice312

Actually it'll be about £340, and that is with everything taken out (all my bills and stuff and childcare)
My partner will also have the same amount, so he'll be there to help when I need it.
We currently receive tax credits of £200, but thanks to the lovely George Osborne that'll be completely removed next year.
And with my partner being self employed and work never certain we really will be in !!!! at times.

ericax

£205 disposable income sounds amazing to me- That's £50 a week! I live off a lot less than that a week for food and essentials x

merlin68

Have i got this right. Between you, you have 680 a month disposable income and your worried about a loss of 200 tax credits.

Alice312

merlin68 wrote: »

Have i got this right. Between you, you have 680 a month disposable income and your worried about a loss of 200 tax credits.

No. That's what we will have once we move to a smaller place, sell our car and he work 6 day weeks rather than 5.