child tax credit new baby confusion

JimmyTheWig

subsoniccoyote wrote: »

Have a look at the rates table http://www.hmrc.gov.uk/rates/taxcredits.htm

...

I also meant to add that the family and baby elements will not be tapered/reduced until the household income has reached £50k

What is meant by the lines

First threshold for those entitled to Child Tax Credit only

£14,495
£15,575

Income disregard

£25,000
£25,000


in the table?


And was the withdrawal rate going from 37% to 39% hidden in the budget somewhere? It's the first I've heard of it.

stephen25uk

subsoniccoyote wrote: »

You may be getting less due to recovery of an overpayment.

If you give a bit more info I can try to work out how much you should be getting paid - but obviously the igure I would give would exclude any overpayment being recovered.

How many hours p/w do you both work?
Is there anyone in the household disabled?
Do you pay any childcare costs?
Do you receive any benefits?

i earn 18000 per year and work 40hrs per week
my wife earns 6500 and works 21hrs per week
we have no disabled family members
and we dont recieve any benifits

[Deleted User]

First income threshold is for those who do not qualify for WTC - dont work or work less than 16 hours p/w.
Income disregard means that you can earn up to £25k more than you did in the previous year without it affecting your current year award or causing you to be overpaid.
The withdrawl rate was raised to 39% in the latest budget but this was already published in the pre-budget report if I remember correctly.

[Deleted User]

stephen25uk wrote: »

i earn 18000 per year and work 40hrs per week
my wife earns 6500 and works 21hrs per week
we have no disabled family members
and we dont recieve any benifits

Based on your previous year income - £30.36 p/w
Based on your current year income - £37.86 p/w

As I stated these are estimates without recovery of an overpayment.
The figures are calculated over a 52 week period (using 2008/09 Tax Credit rates).

JimmyTheWig

Thanks Coyote. You've been a great help.

Means, under the new figures, we'd need _two_ more children to qualify for more benefits. :eek: .
Good job we're not in it for the money!

stephen25uk

subsoniccoyote wrote: »

Based on your previous year income - £30.36 p/w
Based on your current year income - £37.86 p/w

As I stated these are estimates without recovery of an overpayment.
The figures are calculated over a 52 week period (using 2008/09 Tax Credit rates).

thanks a lot for all your help that to within 1 pound of what the entitled to website says,i will need to get on the phone and ask if i am losing any money due to overpayment recovery and what the over payment is...thanks again

stephen25uk

subsoniccoyote wrote: »

Based on your previous year income - £30.36 p/w
Based on your current year income - £37.86 p/w

As I stated these are estimates without recovery of an overpayment.
The figures are calculated over a 52 week period (using 2008/09 Tax Credit rates).

hi again
just called up tax credits and the have given my provisional payment info for 2008-2009

one off payment of 20.37
1 payment of 113.32
then every 4 weeks 112.77
plus i was overpaid 177.00 last year which they have dedected from this years award which i now realise was because my wife was ill for a couple of months and i forgot to inform them when she went back to work.
so i work this out as 1663.93 award including the overpayment 31.99pw
not quite what you worked out for me but as you say your figures are estimates,
sorry for all the questions,reason i started to ask them is my wife is pregnant and due in november,would i simply add another child element onto my award and divde that by 52(2045/52=39.32) then add this onto my existing award to work out what i should get 39.32 + 31.99 = 71.31pw is this correct,again my apologies for all the questions

[Deleted User]

stephen25uk wrote: »

hi again
just called up tax credits and the have given my provisional payment info for 2008-2009

one off payment of 20.37
1 payment of 113.32
then every 4 weeks 112.77
plus i was overpaid 177.00 last year which they have dedected from this years award which i now realise was because my wife was ill for a couple of months and i forgot to inform them when she went back to work.
so i work this out as 1663.93 award including the overpayment 31.99pw
not quite what you worked out for me but as you say your figures are estimates,
sorry for all the questions,reason i started to ask them is my wife is pregnant and due in november,would i simply add another child element onto my award and divde that by 52(2045/52=39.32) then add this onto my existing award to work out what i should get 39.32 + 31.99 = 71.31pw is this correct,again my apologies for all the questions

I used the figures on the rates table but it is never going to be exact as the exact calculation will factor in overpayments, one off payments etc. It actually works out daily rates which is a bit too detailed for me to bother with.

You would add another child element and the baby element (1 year only for baby element) which adds on approx £50.58 p/w.

If you pay childcare costs you may also get help towards that.

stephen25uk

thanks again for the info its really good that there are people willing to give time to help..again thanks