Can someone please confirm!

Alice312

My calculations are definitely correct for tax credits with the new thresholds.

Earnings of £24000 (I work 12 hours and partner works 36, so we are eligible for wtc, but earn too much so it ends up at 0)

£24000-3850=£20150
£20150x48%=9672

And then all elements im entitled to added together = £10885 then minus £9672 = £1213

So my new award for next year would be £1213?
Also im guessing that is the answer I get with the ctc threshold already at £12125 not £16105 and that is definitely what it'll be entitled to next year?

I am driving myself mad so anyone who can confirm I am correct please do.

Icequeen99

Alice312 wrote: »

My calculations are definitely correct for tax credits with the new thresholds.

Earnings of £24000 (I work 12 hours and partner works 36, so we are eligible for wtc, but earn too much so it ends up at 0)

£24000-3850=£20150
£20150x48%=9672

And then all elements im entitled to added together = £10885 then minus £9672 = £1213

So my new award for next year would be £1213?
Also im guessing that is the answer I get with the ctc threshold already at £12125 not £16105 and that is definitely what it'll be entitled to next year?

I am driving myself mad so anyone who can confirm I am correct please do.

Yes that is right. In your position you don't need to worry about the separate CTC threshold, the way you have done it works out right.

You would only need to calculate WTC and CTC separately if they didn't change the CTC threshold and kept it at 16105.

IQ

Alice312

Icequeen99 wrote: »

Yes that is right. In your position you don't need to worry about the separate CTC threshold, the way you have done it works out right.

You would only need to calculate WTC and CTC separately if they didn't change the CTC threshold and kept it at 16105.

IQ

Thank you.
I have given myself the biggest headache trying to work it all out.
I can plan ahead now and make everything work before it all comes in. So many people are going to be getting a huge shock!

justaquestion

Would be very nice of the Government to put up a calculator for next year, so that people can have some notice and prepare.

Alice312

justaquestion wrote: »

Would be very nice of the Government to put up a calculator for next year, so that people can have some notice and prepare.

I think blondebubbles can back me up on the one on the independent working for wtc/ctc claims and giving correct numbers, but giving incorrect figures for ctc only claims.
It's like they're treating it like it'll not be bought down when I has it to be.
Definitely one of the biggest cuts I've ever seen.

Alice312

blondebubbles wrote: »

The way I see it is that the sites with the calculators (telegraph, guardian, BBC) have produced these based on what was actually announced. As the gov hadn't actually mentioned the CTC only threshold, they wouldn't know to change it.

These online calculators very clearly say it is only a rough guide. I believe the guardian and BBC have now removed theirs as requested by KPMG who produced it. The telegraph is still available and still incorrect for CTC only.

It is definetly one of the bigger changes other than the cut a few years back to the income limits (previously a family on £50,000 with one child could still get the CTC family element) and the change in WTC rules for couples with children (from 16 to 24).

In my personal opinion, the criteria for WTC should have been what changed this year and not the tapers/thresholds.

The qualifying hours for WTC with children should have been changed to take into account children's age and a couple should be required to work full time between them (with the exception of ill, disabled, carers, pensioners etc).

For example, currently a single parent can claim on 16hrs regardless of the child's age. I think this should increase to 30 when the child starts high school or say turns 13.

Couldn't agree more.
Me and my partner are lucky enough to still have enough money to pay rent, bills and feed us all, which I think a lot of people are going to struggle to do next year as they rely so heavily on that extra money.

Alice312

blondebubbles wrote: »

Absolutely. In some situations it will be nearer impossible for them to get this extra income from elsewhere eg if both already full time.

But some have chosen not to work more/earn more and they will now need to.

These forums will be used a lot more I think for looking at ways to cut back.

I've already decided that my oh's tax rebate in April can pay the council tax for the year, saving us £102 a month, our phone contracts are going to be halved and we're going to move to a place with cheaper rent (have already seen some places a similar size for £100 less) then that's the money replace just by cutting down and making changes. I bet a lot of other people won't be as willing to do that same though (stupidly).

SkyeKnight

Alice312 wrote: »

I've already decided that my oh's tax rebate in April can pay the council tax for the year, saving us £102 a month, our phone contracts are going to be halved and we're going to move to a place with cheaper rent (have already seen some places a similar size for £100 less) then that's the money replace just by cutting down and making changes. I bet a lot of other people won't be as willing to do that same though (stupidly).

Will they even have time to change? The government have still not officially announced the CTC only threshold so 99% of people don't know what's going to happen. I wonder if they are waiting for the next really big "bad news day" to release it without being noticed.

Casual_Bystander

Agree that 99% of people either don't know or have underestimated the cut.

Was speaking with some friends at the weekend, he works full time, she works part time, 1 child, total income under £30k. They were blissfully unaware that cuts would affect them, they said 'we only get the childcare bit, so it won't affect us'. I told them it probably will and they need to run the numbers, but don't think they believed me. They get their free 15hrs in January which will help, but could be in for a shock come April if/when they lose all WTC

Cas

Alice312

So many people don't have a clue.
If they attempted to keep the ctc threshold at its current level it'd cause all sorts of confusion for working out the wtc/ctc claims, as the threshold that's used for people that receive both have the wtc threshold used (am I right?)
so inevivitably it's coming down, but trying to explain it to people is impossible lol.
My sister in law didn't have a clue that any of this was happening.

Alice312

SkyeKnight wrote: »

Will they even have time to change? The government have still not officially announced the CTC only threshold so 99% of people don't know what's going to happen. I wonder if they are waiting for the next really big "bad news day" to release it without being noticed.

I still think they may potentially postpone it for a few more years until the 30 hours childcare comes in, they've got to offer some sort of recovery or so many mums will just give up work.