Tax credit calculators for new budget 2016/17

hayleyrods

I work 24 hours and earn 9700 I have one child and I'm a single parent how will I be affected

zagfles

Here's a very simple formula to work out the loss, if you get WTC and earn at least £6420.

Income x 0.07 + 784.20

MartinStafford

I have been unable to find a calculator to work out the Tax Credits changes for 2016-2017 ie one that works. So I have created a spreadsheet which does the job. It is simplistic in that it only covers scenerios where 2 people are working and childcare calculations are needed. Obviously there are more complex scenerios but it should help a number of people who are wondering just how their tax credits will change next tax year and who don't want to wait until Christmas to find out.

The Excel spreadsheet that I have created follows a worked example from the HMRC site plus details the changes in elements and thresholds for 2016-2017. You can enter your own salary and no. children into the worksheets to find out how your Tax Credits will change. I checked it for accuracy and it was near enough correct when comparing it to my award notice for the current tax year. Would suggest that people do the same before working out 2016-2017 figures. It should only be used as a rough guide.

Unfortunately I am not allowed to post links because I am a new user. Will try to post the links to the HMRC page plus download page for the Excel when I can.

MartinStafford

Thanks. Will try Entitledto site.

Icequeen99

All you need to work out the loss is the income figure

There is a quick reference table here
http://www.litrg.org.uk/News/2015/150917-How-will-tax-cuts-2016-affect-you

And as BB says the Entitled to calculator works it out.

IQ

Iwani

Having done the Entitled To calculator, it ties in with my own calculations, and the link posted above.

It also states housing benefit will go up as a result of the tax credit cuts. Is the case for most/all people?
As if so, as far as I can see the cuts of £100 a month I've been dreading are offset a reasonable amount by a housing benefit rise of £77 a month. Or am I missing something?

bloolagoon

Iwani wrote: »

Having done the Entitled To calculator, it ties in with my own calculations, and the link posted above.

It also states housing benefit will go up as a result of the tax credit cuts. Is the case for most/all people?
As if so, as far as I can see the cuts of £100 a month I've been dreading are offset a reasonable amount by a housing benefit rise of £77 a month. Or am I missing something?

No you are missing nothing bar scaremongering and headlines. You will be worse off it nothing like the headlines or those with a mortgage (and very low interest rates). Press don't talk about that though

bloolagoon

skcollobcat10 wrote: »

So that must mean anybody who does not have a mortgage is not going to loose as much as they thought financially?

Although families with a mortgage will still suffer?

To be fair mortgage rates are so low the interest rate rising will affect them more than TC if it went to 7%.

Icequeen99

bloolagoon wrote: »

No you are missing nothing bar scaremongering and headlines. You will be worse off it nothing like the headlines or those with a mortgage (and very low interest rates). Press don't talk about that though

If you get housing benefit, then that will mitigate some of the loss of tax credits. But not all tax credit claimants get HB. There are plenty of people who will be worse off as much as the headlines suggest.

I'm not quite sure i understand why those with mortgages are not going to be as worse off as the headline figures suggest?

IQ

bloolagoon

Icequeen99 wrote: »

If you get housing benefit, then that will mitigate some of the loss of tax credits. But not all tax credit claimants get HB. There are plenty of people who will be worse off as much as the headlines suggest.

I'm not quite sure i understand why those with mortgages are not going to be as worse off as the headline figures suggest?

IQ

They will be worse off by the full amount, however, those of us who are mortgage payers are benefitting from very low interest rates that are creating lower housing payments.

So for many compared to renting the disposable income will still be greater. If interest rates rise by more than a percent this will cause more financial difficulty.