Tax credit calculators for new budget 2016/17

flight747

Hi

Please could anyone calculate the following scenario for my mate?

Single lone parent (claimed DLA middle rate care) aged 25
1 child aged 13 (non disability)
WTC £149 pw (sept 2015 to Apr 2016)
CTC £63 pw
40 hours a week full time (£6.70 per hour from Oct 1st)
£13936 gross annual

Lessthanthree

Did my extra info help?

flight747

blondebubbles wrote: »

You already posted this. However as I replied, the income is incorrect based on NMW from 2016/17 for over 25s

To provide a calculation Id need to accurate income.

sorry it will be £14976 in 2016/17 for 40 hours x 7.20 = £288 x 52 = £14976

flight747

blondebubbles wrote: »

Approx £5734 for the year however they will compare this year's earnings to next and apply the relevant disregards.

The figures you have quoted that they currently receive appear to be quite high. You should have then check they have the correct income details.

I think she made a huge mistake on tax credits award. She put income as gross pay before tax NI. Or Are she suppose to declared taxable gross only (after tax NI)?

flamin_galah

Based on our award for this year, they've estimated what we'll get per week next year. I'm assuming this is incorrect as it will be based on the 'old rules' and not the new ones and I haven't the foggiest idea how to calculate what it will be instead. I'd really appreciate it if you could help out!

2 adults - one working 37 hpw, one staying at home not earning
Working adult's wage approx £31000 (this tax year I earned £500 so might need to include that in calculations for next year)
3 children - one at college so 16/17 and will be all of next tax year, one at school, one below school age

It's frustrating to not be able to work it out in advance as I work in the education field so in order to take posts for September next year, I need to be job hunting before April. But if possible, I'd like to stay at home another year after this one as the little one has additional needs and I don't feel she's ready for nursery (no dla, though in the throes of an appeal).

Freddie_Mercury

Hi Blondebubbles

My wife works 30 hours a week and receives an income of around £17,500.

We have 3 children under 10.

I'm a full time Dad at the moment but as our youngest has just started nursery I am hoping to start working again soon.

We are currently receiving approximately £8208 in ctc and around £250 in wtc.

It states on the award form we will receive £684 ctc a month until 27/03/2017.

Does this seem right to you?

Many thanks

Freddie_Mercury

blondebubbles wrote: »

As mentioned earlier in the thread, awards haven't been updated for the new rates. They have only just been approved.

Your award is likely to be £7113 for the year although if you work that will obviously decrease.

Thanks a lot!

SkyeKnight

For those who want to do their own calculations, just to say that calculating the loss of Tax Credits for next year, very approximately is easy as long as everything stays the same (salary, nb. children, disabilities, childcare) and salary is over the old disregard (just over £6k).

Take your pay, subtract £6,000, multiply by 0.07 and add £1200.
So, doing an example: salary of £24k.

Step 1: subtract £6k = £18,000
Step 2: multiply by 0.07 = £1,260
Step 3: add £1,200 = £2,460

So, the total loss is around £2.5k - this is not exact but is within about £100 of the right answer.

The reasons for this (if anyone is interested): 0.07 is the increase in the taper from 41% to 48%, £1,200 is the approx loss due to the increased threshold.

SkyeKnight

blondebubbles wrote: »

Personally that confused me even more and would take me longer to work out for others. I suppose we all have our own ways of doing things.

I do the calculation as:

1. Total elements entitled to - rates are here 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

2. Income minus £3850

3. Multiply by 48% = the reduction due to income

4. Take Step 3 from Step 1 - this is what you are entitled to.

This is for WTC claims and WTC/CTC claims.

For CTC claims replace £3850 with £12125.

Well, I was trying to give the simplest calculation possible (without having to look up rates etc), however I hope I haven't confused people. I'm sure you will continue your sterling work as being the "Official MSE 2016/17 tax calculator"! :-)

Freddie_Mercury

SkyeKnight's method would leave us £2005 worse off if I didn't return to work.
Blondebubbles has worked out we would lose around £1100.

I'm confused.