Tax credits tablesv - which to use

phil001

Darksparkle wrote: »

At present, she is better off working the hours she already does or dropping to 16hrs.

There is very little difference with working 10hrs or not working.

Scenario 1

Household income £33,600
Childcare £4160
Tax credits £2654

So income £33,600 - £4160 + £2654 = £32,094

Scenario 2

Household income £28,500
Childcare £2600
Tax Credits £1832

So income £28,500 - £2600 + £1832 = £27,732

Scenario 3 (if not working)

Household income £24,000
Childcare £0
Tax Credits £3677

So income £24,000 + £3677 = £27,677

Scenario 4 (if working 16hrs and childcare was £65 per week)

Household income £31,000
Childcare £3380
Tax Credits £2928

So income £31,000 - £3380 + £2928 = £30,548

Thanks for that, much appreciated.
It's roughly what I thought.

Time to have a think about what's best to do, can't really afford a drop in income at the moment.

Darksparkle

phil001 wrote: »

Thanks for that, much appreciated.
It's roughly what I thought.

Time to have a think about what's best to do, can't really afford a drop in income at the moment.

In my personal opinion, it wouldn't make sense to reduce the hours.

Tax credits changes are coming. Although they have been delayed for now, it will change at some point. Households need to be looking at ways to manage without the tax credit help.

If the planned changes had come in April then you'd have stopped getting any tax credits based on your current situation.

neilvw

Darksparkle wrote: »

In my personal opinion, it wouldn't make sense to reduce the hours.

Tax credits changes are coming. Although they have been delayed for now, it will change at some point. Households need to be looking at ways to manage without the tax credit help.

If the planned changes had come in April then you'd have stopped getting any tax credits based on your current situation.

Perhaps of interest - we now have an official date for when existing tax credits claimants are planned to start to be moved over to Universal Credit: mid-2018.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/487395/letter-government-response-to-universal-credit-occasional-paper-15.PDF (last para)

There will be transitional protection at the point of change.

Darksparkle

neilvw wrote: »

Perhaps of interest - we now have an official date for when existing tax credits claimants are planned to start to be moved over to Universal Credit: mid-2018.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/487395/letter-government-response-to-universal-credit-occasional-paper-15.PDF (last para)

There will be transitional protection at the point of change.

Thanks.

I'll believe it when I see it!

neilvw

Darksparkle wrote: »

Thanks.

I'll believe it when I see it!

Yes, quite a challenge. I think the emphasis is on the "start"!

phil001

Darksparkle wrote: »

In my personal opinion, it wouldn't make sense to reduce the hours.

Tax credits changes are coming. Although they have been delayed for now, it will change at some point. Households need to be looking at ways to manage without the tax credit help.

If the planned changes had come in April then you'd have stopped getting any tax credits based on your current situation.

Hi again,

We have another possible change in circumstances and wondered if you have a second to answer another question

It is very likely that we will be changing childcare provider shortly meaning a significant increase in childcare costs, from £80 to £135 a week.
Nothing else has changed from the situation stated previously.

Is there any chance you could tell me how much difference (if any) this would make to our tax credits?

Many thanks in advance, all help very much appreciated!