Threshold earning limit for WTC

janec

Hi
I wonder if anyone knows the maximum you can earn before WTC stops ? Despite googling for an hour I can’t find an answer.For CTC it’s around £16,000 but nothing for WTC .I know that after £6240 each £ is reduced by 41% .I thought a few years ago it was around £12,000 but I can’t find the information.
Many thanks

zagfles

janec wrote: »

Hi
I wonder if anyone knows the maximum you can earn before WTC stops ? Despite googling for an hour I can’t find an answer.For CTC it’s around £16,000 but nothing for WTC .I know that after £6240 each £ is reduced by 41% .I thought a few years ago it was around £12,000 but I can’t find the information.
Many thanks

What elements are you entitled to? With that plus what you've written above, you have enough info to work it out. Divide by 0.41 and add the 6420 threshold and that's when WTC is tapered to zero. Rates are here:

https://www.gov.uk/government/publications/rates-and-allowances-tax-credits-child-benefit-and-guardians-allowance/tax-credits-child-benefit-and-guardians-allowance

For instance, if you're entitled to the basic, couple and 30 hour elements, total of 1960+2010+810=4780 before the taper. Divide by 0.41 and add 6420 and you get 18078

janec

Zagfles thanks .i did it the other way round of income minus £6240 x41% .It would be around £16k .I honestly thought that when I changed jobs 3 years ago and my income increased someone at the tax credit office told me you couldn’t earn more than around £12,500 ?! I must of dreamt it :rotfl: thanks again

Darksparkle

janec wrote: »

Zagfles thanks .i did it the other way round of income minus £6240 x41% .It would be around £16k .I honestly thought that when I changed jobs 3 years ago and my income increased someone at the tax credit office told me you couldn’t earn more than around £12,500 ?! I must of dreamt it :rotfl: thanks again

For a WTC only claim its around £13000 for a single person and £18000 for a couple. More if any disabilities.