Child tax credit / water sure benifit

mrs_puddleduck

For the last 10 years or so I've been able to get the benifit discount on my water bill . I get this as my child has a health condition that uses more water and also have the family element of the child tax credit .

Next year when the new tax credits change comes in I'm trying to find out if I can still get the water benifit .

I pay around £500 for my water bill now but if I was to loose the water benifit my bill would go over £2100 per year .We have a water meter .

I can't seem to find an answer can someone help

I work 20 hours at £8000 per year
Husband works 40 hours at 24000

We have 3 children

2 at school under 11

One in full time education age 17



I have no idea what tax credit I will get if any , but if we loose the family element that would make a massive difference of an extra £1600 water bi

mrs_puddleduck

2 of my children have a skin condition that require a bath each night with prescribed oil .

We don't get dla

My 17 year old is in 6th form

mrs_puddleduck

For year 2014 -2015
I was awarded £3380.89

controversy

mrs_puddleduck wrote: »

2 of my children have a skin condition that require a bath each night with prescribed oil .

We don't get dla

My 17 year old is in 6th form

Don't worry Mrs Puddleduck I'm going to go and work it all out for you.

mrs_puddleduck

2015-2016

My award was £1199

mrs_puddleduck

I m just trying to work out in advance how much we can earn before the family element is taken away.
Other wise we are both going to have to do a lot of over time ( if available )
Or cut back on hours .

mrs_puddleduck

Opps I've just realised I put 33000 for my husband instead of 24000

mrs_puddleduck

Been along day at work

controversy

I'm just reading budget 2015. Be about 1 hr till I have got the answer for you.

mrs_puddleduck

Thank you for all your help xx

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mrs_puddleduck wrote: »

Thank you for all your help xx

Before you read all this I just want to tell you that your still be entitled to the Family Element from 2016 onwards.

I guess you already know you don't get WTC. What you actually get is Child Tax Credit and the Family Element I guess.

With £32000 income you are about £500 between keeping your Family Element and Loosing it.

That would be 74 hours of work on min wage I guess. Your just have to make the decisions whether you want to work past that buffer zone or not take as much over time.

I hope this helps you.

Anyway.

Okay. I'm going to show you how I worked out this sum so you can trace back my steps.

As of 2015 to 2016 your entitlement should be something around £1621. You can get a estimate using the calculator from Gov.uk

https://www.gov.uk/tax-credits-calculator

April 2016 is when things start to change.

As of next tax year your going to see a drop in Child Tax Credit because the Taper rate has been changed from 41% to 48% for every £1 your family earns.

Also there will be a reduction in the thresholds for tax credits.

As for the family element existing claims will be protected.

The information for all of this is below.

Note this is Political Mumbo Jumbo!

2.101
Changes to taper rates in tax credits – From April 2016 the taper rate in tax credits will be increased from 41% to 48% of gross income. Once claimants earn above the income threshold in tax credits, their award will be withdrawn at a rate of 48 pence for every extra pound earned (41)


2.102
Changes to tax credits income thresholds and Universal Credit work
allowances – From April 2016 the income threshold in tax credits will be reduced from £6,420 to £3,850 per year. Work allowances in Universal Credit will be abolished for non-disabled childless claimants, and reduced to £192 per month for those with housing costs and £397 per month for those without housing costs. Claimants earning below these amounts will retain their maximum award. (42)

2.107
Removing the Family Element in tax credits, the first child premium in
Universal Credit and the Family Premium in Housing Benefit
– From April 2017, the Family Element in tax credits and the equivalent in Universal Credit will no longer be awarded when a first child is born. This will also apply for families with children making their first claim to
Universal Credit. Households who have been in receipt of tax credits or Universal Credit with an interruption of less than 6 months will be protected. Furthermore, children with disabilities will continue to receive the Disabled Child Element or Severely Disabled Child Element in tax credits and the equivalent in Universal Credit. In Housing Benefit, the family premium will be removed for new claims and new births from April 2016. (40)

END OF MUMBO JUMBO

Note: “Households who have been in receipt of tax credits or Universal Credit with an interruption of less than 6 months will be protected”.

If you still get Tax Credits this means you should still be entitled to the Family Element.

Now for the Maths.

We will start with 2015-2016.

Child Tax Credit is calculated as so.
You can check the formula here.

http://www.which.co.uk/money/tax/guides/tax-credits/how-to-calculate-tax-credits/

£32000 – £16105 = £15895.
£15895 / 100 * 0.41 = £6517.

£6517 is your Child Tax Credit reduction rate.

Each child gets £2780. Since you have 3 that is £8340.
You can check this here.

https://www.gov.uk/child-tax-credit/what-youll-get

£8350 - £6517 = £1833.

The net Child WTC is £1833 (this isn't used in further calculations).
The Family element is £545 (link above)
The Couple WTC is £2010
The 30 hr element is £810

Working Tax Credit is calculated as so.

£32000 - £6420 = £25580
£25580 x 0.41 = £9528

£9528. This is your WTC reduction rate.

£2010+£810+£545 = £3365.

£3365 - £9528 = £-6163 = £0 entitlement for WTC.

So the total for your Tax Credits in my calculations is £1833.

This means you will keep Family Element !!!!!! for 2015/16.

The official Gov.uk calculator came in at £1621.
This means I am about £212 off. We need this for the 2016-2017 calculation so I can show you that you will still be entitled.

Here are the calculations for 2016 to 2017.

Child Tax Credit.

£32000 - £16105 = £15895.
£15895 / 100 * 0.48 = £7630.

£7630 Child Tax Credit reduction rate.

£2780 x 3 = £8340.
£8340 - £7630 = £710.

We know your not entitled to WTC so we can ignore that.

If we take your Child Tax Credit which is £710 and take £212 from it then there is £498 left.

This means you keep the Family Element and Child Tax Credit for 2016/17 !!!!!!!

This means you still will be entitled. You can also use the Family Element because it is the last thing which gets taken off.

Also remember that existing claims are protected so you will still keep your Family Element entitled provided you won't cancel your existing claim. If your circumstances change you just update your existing claim. If the job centre/dwp try and cancel it you must protest not for them to do so.

I hope this takes a weight off your shoulders.

As a person who was born with a genuine disability I always try and do my bit for those who paying their taxes and helping those like myself.

I hope in time your children will be cured of their skin condition. I have severe eczema and its not nice.

Hope you sleep well after reading this.