Tax credit calculators for new budget 2016/17

chelseablue

!!!!!!


Thank you for looking x

staffsuk

Hi - the calculators that were around shortly after the budget showed that a SE individual working 30+ hours and with no dependants earning NMW (£6.70 from October?) would go from receiving around £1200 to receiving nothing.

Could anyone corroborate this?

staffsuk

Thanks Blondebubbles

Sorry I meant to say earning the equivalent of NMW as it seems that was used as some form of gauge. What would be the WTC figure be for a net profit equivalent to that figure of £11,232?

staffsuk

Ahh - understood!

Does that apply to employees as well as the SE?

staffsuk

blondebubbles wrote: »

If a SE earns less than NMW then tax credits may do further checks to ensure the business is legitimate.

Not sure I see the point of that if the person is earning above £9,500 but less than NMW equivalent as they wouldn't receive any WTC?

blondebubbles wrote: »

There is no difference, income is income. They don't treat employees or self employed any different.

OK thanks

Dragoncry

Is there a simple way to work this all out ? I would really like to get my head around it all and work out next April's payment . Thanks

Dragoncry

blondebubbles wrote: »

Add total elements together (All elements are frozen at this year's rates except disability).

https://www.gov.uk/government/publications/tax-and-tax-credit-rates-and-thresholds-for-2015-16/tax-and-tax-credit-rates-and-thresholds-for-2015-16#working-and-child-credit-tax-rates-and-thresholds

For WTC claims and WTC/CTC claims - income used to calculate tax credits minus £3850. Multiply by 48%. Deduct this from total elements.

For CTC only claims - income used to calculate tax credits minus £12125. Multiply by 48%. Deduct this from total elements.

Thanks for that. That is for this tax year yes? The quoted payments for 2016-2017 they said on the end of this years reward will be different?

Dragoncry

blondebubbles wrote: »

No that's for next year as that's what you asked for.

Current tapers are £6420 (changing to £3850 as mentioned) and £16105 (changing to £12125 as mentioned).

The taper rate is currently 41% (changing to 48%).

Sorry not sure what you mean by this year's reward?

This year as in what we get each month now, April 5th 2015 to next year. So the amount they quoted will be roughly what they have said on there...

Dragoncry

blondebubbles wrote: »

Do you mean your awards notice rather than reward?

I have no way of knowing if the figures quoted on that are correct.

You asked in your post how to work out payments from next April, that's what I was explaining.

It's the tax credit award summary of payments and at the end it has 'payments in 2016-2017'. Thanks for all your help

TONI_B

Does the reduction rate of 48% also apply to childcare costs? I am due to return to work in January following maternity leave and trying to figure out if its worth it! Can anyone do 4 scenario calculations for me please for april 2016-march 2017? Thanks in advance xxxx


4 kids - aged 10, 9, 7, 1


1. My salary: £30000 (40hrs)
Partner salary: £18000 (40hrs)
Weekly childcare: £364 (nanny for all 4)


2. My salary: £30000 (40hrs)
Partner salary: £18000 (40hrs)
Weekly childcare: £258 (nursery for 1 and after school club for 1)


3. My salary: £15000 (20hrs)
Partner salary: £18000 (40hrs)
Weekly childcare: £214 (nursery and holiday club)


4. My salary: £0 (0hrs)
Partner salary: £18000 (40hrs)
Weekly childcare: £0