Child Tax Credit query

melbury

How much you can earn before child tax credit entitlement stops altogether? I have been reading on different sites but cannot find a definitive answer.

Somebody told me that if you earn over £26,000 per annum then you are not entitled to claim it - is this correct?

Many thanks.

Caz3121

you can look at entitlement tables
there is no hard and fast answer as it depends on how many children whether there is any childcare costs and what the income was last tax year
eg. no childcare costs and 1 child
14/15 income £23k 15/16 income £26k...child tax credits due based on an income of £23k (as current years income is not more than £5k more)
14/15 income £18k 15/16 income £26k....child tax credits due based on an income of £21k (income less £5k disregard)
14/15 income £30k 15/16 income £26k...no child tax credits payment as calculation would be based on an income of £28.5k

tables with no childcare costs https://www.gov.uk/government/publications/tax-credits-entitlement-table-working-at-least-16-hours-and-no-childcare/tax-credits-entitlement-table-working-at-least-16-hours-and-no-childcare
With childcare cutoff is higher https://www.gov.uk/government/publications/tax-credits-entitlement-tables-working-at-least-16-hours-and-paying-childcare/tax-credits-entitlement-tables-working-at-least-16-hours-and-paying-childcare

melbury

Caz3121 wrote: »

you can look at entitlement tables
there is no hard and fast answer as it depends on how many children whether there is any childcare costs and what the income was last tax year
eg. no childcare costs and 1 child
14/15 income £23k 15/16 income £26k...child tax credits due based on an income of £23k (as current years income is not more than £5k more)
14/15 income £18k 15/16 income £26k....child tax credits due based on an income of £21k (income less £5k disregard)
14/15 income £30k 15/16 income £26k...no child tax credits payment as calculation would be based on an income of £28.5k

tables with no childcare costs https://www.gov.uk/government/publications/tax-credits-entitlement-table-working-at-least-16-hours-and-no-childcare/tax-credits-entitlement-table-working-at-least-16-hours-and-no-childcare
With childcare cutoff is higher https://www.gov.uk/government/publications/tax-credits-entitlement-tables-working-at-least-16-hours-and-paying-childcare/tax-credits-entitlement-tables-working-at-least-16-hours-and-paying-childcare

Many thanks, that is really helpful.

zagfles

melbury wrote: »

How much you can earn before child tax credit entitlement stops altogether? I have been reading on different sites but cannot find a definitive answer.

Somebody told me that if you earn over £26,000 per annum then you are not entitled to claim it - is this correct?

Many thanks.

That's because there is no definitive answer. Someone with 10 disabled kids and childcare costs could get CTC with an income of £200,000 !!

CTC consists of elements which are tapered with income, there is (currently) no limit on the number of elements you can get and so there is no limit on the income you could have and still get CTC.

melbury

Forgot to ask, is the £26,000 income gross or net?

I am enquiring for someone that I know. Their total earnings are circa £45,000 jointly and they have just had first baby. He is self-employed, she is employed.

Darksparkle

melbury wrote: »

Forgot to ask, is the £26,000 income gross or net?

I am enquiring for someone that I know. Their total earnings are circa £45,000 jointly and they have just had first baby. He is self-employed, she is employed.

It's taxable income. So after pension contributions but before tax and NIC.

On £45,000 they wouldn't have entitlement to tax credits. The cut off without childcare is approx £26,000 and with childcare £41,000 for one child.

The only other thing that impacts these limits is any disabilities in the household.

They'd get child benefit of £20.70 per week.