Newbie here - tax credits question!

Laura1977

Hi all.

I've been reading the website for a while now, but this is the first time I've needed to post anything, so please be nice!

I have started to look into tax credits as I'm pretty sure we're now entitled since our circumstances have changed and our joint income is a lot less than it used to be.

Joint income was around 64k annually up until about Nov last year, but then I went on maternity leave and when I start a new job next week joint income will be down to about 44k.

We have 2 children, both going to nursery, with weekly childcare bills of about £180.

I'm sure we should be entitled to child tax credits or something, but after using the benefits checker at entitled to and also on the hmrc website, it seems they base your entitlement on what your income was during the 2006-07 tax year??? Can that be right? Obviously if I apply using our income for that tax year they'll tell us to get lost, but it's NOW our income is less, so it's now we need the extra help if we can get it.

Can anyone shed any light on this, or have I just completely missed the point?

Many thanks in advance!
Laura.

DaisyFlower

On £44k you'll only qualify for basic tax credits of £42 a month, not sure if the basic increases when you have 2 children - over a set salary limit it stays the same regardless of the number of children.

[Deleted User]

DaisyFlower is correct in that you will receive around £42 every 4 weeks.
The basic element stays the same regardless of the number of children you have.

Laura1977

£42 a month would be a great help - anything would really!

But does anyone know about the fact it looks like they'll assess us using our 2006-7 income which was much higher?

Thanks for the replies so far.

[Deleted User]

They will assess you on 2006-07 to start with. You would then call up to give them your 2007/08 income when your claim has been processed.

To be honest by the time you call up and get the claim pack you will be in to the next tax year, so the form may just ask for 2007/08 income.

thriftymomma

Yes as soon as you get the paperwork from them ring them up with your estimated figures for this year and they will take that into account.

sassybooboos

when i have claimed i advise them on a estimated income they have taken it from what i have told them then i have to confirm the exact amount at the end of the financial year.

what ever you do don't under estimate because you will have to pay back next year.

phone the helpline up and they will send you a claim form. you usually end up phoning them once they tell you what your entitled to cause they always have something wrong.

pippamannequin

unbelievable

mitchaa

Wait a couple of weeks and it will be April 07-April 08 earnings for the enitlement calculations.

Even on a reduced joint of £44k, yes all you'll be entitled to is the family element of £545 per year.

You wont qualify for any childcare costs, as you earn too much.

The middle earners get well and truelly screwed by our government. Low earners get every benefit under the sun and high earners use every loophole to avoid paying taxes. Its Mr and Mrs average that get penalised the most.

backtomum

DaisyFlower wrote: »

On £44k you'll only qualify for basic tax credits of £42 a month, not sure if the basic increases when you have 2 children - over a set salary limit it stays the same regardless of the number of children.

Just goes to show how unfair tax credits are. My OH and I only earn £27000 a year between us and guess what we only get £42 a month (the minimum) - we have 2 kids too. Sorry I know it isn't a discussion thread but it makes my blood boil.

mitchaa

backtomum wrote: »

Just goes to show how unfair tax credits are. My OH and I only earn £27000 a year between us and guess what we only get £42 a month (the minimum) - we have 2 kids too. Sorry I know it isn't a discussion thread but it makes my blood boil.

I do believe on an income of less than £32k you would be enitled to claim back some childcare costs though. The O.P wouldn't.

Also not sure, but you may also receive some help with WTC.

Dont quote me on that though, but i was reading a thread on here a couple of weeks ago where it said the cut off point was about £32k (joint)