child tax credits & CA

Tigsteroonie

jim-jim wrote: »

16/17 is just self employed wage, this is what tax credits on the phone have based this years on, and later on in the year to call back if incomes increases.

So at the moment you have advised TC of a drop in income of £4669 which, being in excess of a drop of £2500, means they have recalculated. You'll receive more CTC.

However if you claimed CA then your total household income for the year wouldn't be £20,000, it'd be £22500 (roughly). So you'd need to phone TC again to tell them that you income is going up (because of the CA); TC would recalculate again, and your CTC will decrease.

You'd gain approx £2500 this year in CA. You wouldn't lose all that in the drop in CTC because it's a 41p/£ taper. So I'd say yes, you're better off claiming CA than not claiming.

JMO mind!

jim-jim

Thank you tigsteroonie, thats explained it a bit better.

The thing that is bothering me is the 3 changes I've already got coming up in aug/sept without adding another change.

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