Get more Tax Credit if your on maternity leave

mitchaa

Just a few figures taken direct from HMRC website regarding CTC.

0-£16,400....Full entitlement of CTC

£16,400-£31,400....There is a taper in place from full entitlement down to the family £545 element which is set at £31,400

£31,400-£50,000....Family element of £545

£50,000-£58100.... There is a taper in place from full family £545 entitlement down to £0 which is set at £58,100.

(Figures change slightly for the family element if you have a child under the age of 1 where the family element threshold rises to £66k)

Shelley84

mitchaa - are those figures for one person or both (if in a couple).

Our joint wages from May will be £37500. Both working 37.5 hours a week.

Does that mean we will get £545 CTC a month or a year? What about WTC?

mitchaa

Shelley84 wrote: »

mitchaa - are those figures for one person or both (if in a couple).

Our joint wages from May will be £37500. Both working 37.5 hours a week.

Does that mean we will get £545 CTC a month or a year? What about WTC?

Joint figures.

You'll get £545 per year. (£10.48pw)
You will get no WTC.

I.e middle earners get shafted:mad:

Single figures are

0-£16,400....Full entitlement
£16,400-£21,400....Tapers off as before down to the £545 element at £21400.
£21,400+.....Family £545 element only.

Anthillmob

thanks lipstick

Imani

this is a really good thread i need to call up asap but will call hr to get my estimate income for the new tax year

i have called many times but they kept saying they need to know my estimat etc. as my wages dip march pay day i figured i wait till then

great thread
some good info on here

millymoomoo_2

mitchaa wrote: »

Joint figures.

You'll get £545 per year. (£10.48pw)
You will get no WTC.

I.e middle earners get shafted:mad:

Single figures are

0-£16,400....Full entitlement
£16,400-£21,400....Tapers off as before down to the £545 element at £21400.
£21,400+.....Family £545 element only.

One day I will learn to read things properly lol!
I misread your post and started to panic.

Goes to show though I'm notoriously bad at reading things properly which is why I (like many I presume) didn't know about the Maternity/Paternity thing before.

Spendless

mitchaa- thanks for the amounts very helpful. I had a litle card when tax credits first came out that showed the figures. What do you mean by joint and single though. I thought it was TOTAL household income. Why does the family element kick in at £21,400 for a single earner but not till £31,400 for joint?

Is it possible to have a similar sort of chart for how much childcare gets paid at. eg at what income do they stop paying 80% of childcare. Or is this too complicated to tell us.

BTW- I hope each budget that the family element is put up;) but it never has been. It's remained the same since tax credits came in in april 03.

mitchaa

I'm not sure of the rates that the tapers are set at but there is only a £5000 taper limit if you're single and a £15,000 taper limit if you're a family.

The family entitlement is always there, its just below £31,400, you'll receive part of the child element also. (If you are a couple) Just the same way if you earned less than £21,400 as single you'll still receive some part of child element.

It's wrong i agree that an individual earning £25k wouldn't be entitled to child element but a couple earning £12.5k each would be entitled to part of child element.

You are right, the £545 family element should be raised considerably as it has never had an increase unlike the child element of CTC.

Spendless

mitchaa wrote: »

It's wrong i agree that an individual earning £25k wouldn't be entitled to child element but a couple earning £12.5k each would be entitled to part of child element.

I never knew that, and the 2 £12.5k earners would both get a tax allowance on that amount, so the net income would be higher than 1 person earning £25K.

[Deleted User]

The reason why the couple would qualify for the element and the single person would not is down to the fact that there is another adult to financially support.

Single claimants have a higher income threshold of £11,600 before WTC is tapered away.
Couples can only earn between them £16300 before the WTC is tapered away which equates to £8150 each.