Tax credit calculators for new budget 2016/17

Icequeen99

Lizziewizzie82 wrote: »

Hi don't know if anyone can please help I can't get my head around the calculations.... I know I'm going to be down on what I'm getting now.
I'm a single mum I have 3 kids, 11,9 and 7. I currently work 16 hours and earn about £6720 a year.

You will lose around £1100 next year.

IQ

mel48rose

Icequeen99 wrote: »

You will lose around £1100 next year.

IQ

Hi, I thought you only lost if you earned over 12K??

mel48rose

blondebubbles wrote: »

If don't meet the criteria for WTC.

If you are entitled to WTC the threshold changed from £6420 to £3850

Ah I see now. It's so confusing! So many people I know that are worried sick about how they are going to manage after next April.

cifpower

Interesting development today in the New Statesman

http://t.co/zcoZI9GLis

Frank Field, Labour MP from Birkenhead, has written to the Chancellor asking the following:

There is one cost neutral policy in particular which could protect National Living Wage-earners: a secondary earnings threshold paid for by a steeper withdrawal rate for those earning above this new minimum rate.

This option would retain the existing £6,420 income threshold but introduce a second gross income of £13,100, the equivalent of working 35 hours a week on the National Living Wage. For gross earnings between £6,420 and £13,100, the taper rate would be kept at 41 per cent. The lowest paid working families, therefore, would experience no reduction in tax credit income compared with the current system. To keep the policy cost neutral, gross earnings above £13,100 would need to be tapered at 65 per cent.

I can see the Chancellor going down this route come the Autumn Spending Review next month.

zagfles

cifpower wrote: »

Interesting development today in the New Statesman

http://t.co/zcoZI9GLis

Frank Field, Labour MP from Birkenhead, has written to the Chancellor asking the following:



I can see the Chancellor going down this route come the Autumn Spending Review next month.

Seriously? After adding tax and NI to a 65% tax credits taper it makes a 97% MDR rate for earnings above £13100!! And if they claim HB as well it'll be 99%!!

I'd have thought better of Frank Field. It's crackers. And no way can they know it'll be cost neutral - it might be if you naively assume behaviour won't change, but with a 99% MDR of course it will. How many people on NMW/NLW will do overtime if they end up with about 7p per hour?

markharding557

cifpower wrote: »

Interesting development today in the New Statesman

http://t.co/zcoZI9GLis

Frank Field, Labour MP from Birkenhead, has written to the Chancellor asking the following:



I can see the Chancellor going down this route come the Autumn Spending Review next month.

This would be a wise move if adopted by Osborn, it would protect families on low incomes many of whom are single parents.

A good way of getting limited funds to those who need it the most.:T

cifpower

Letters to be sent out before Xmas

http://www.sunnation.co.uk/boris-warning-osborne-about-political-disaster-of-tax-credit-cuts/

abby1234519

I can't work ours out either, I earn £20500 at the moment - OH has just finished work to go to uni so no earnings from now until at least 2019. Childcare was £160 a week- now its going to be an average of £18 a week. I'm pretty sure for the rest of the tax year we are entitled to £0 but the 2016/2017? I literally haven't a clue which is stressful when trying to plan ahead. I can't work out what I'd lose as childcare circumstances will be different. I was sure I wouldn't get the childcare element as only one of us is earning but yesterday the guy on the phone (when i reported changes) was ADAMANT that if I worked over 24 hours then we'd get the childcare element. I questioned it about 5 times!

glittercakesxx

Hi all,

My husbands hours have just gone up...does anyone know what our entitlement would be with just him working average 28 hours (£9900)
I am stay at home mum and we will have 2 children by April, we also have overpayments on our tax credits to pay off which is 25% I think

glittercakesxx

no hes only 23