i have posted this on reply to other thread but please read

We should be so lucky!

Of course not the NRP's income is calculated by a completely different set of rules!! In fact any tax credits the NRP gets is counted as income and included in the assessment!

13Kent wrote: »

Thanks for your comments, Kelloggs. I appreciate you taking the time to answer my post.

I'm a bit confused about working tax credits as when I used the tax calculator with a fictional family with joint incomes of £55 000 and £100 child care costs a week it says that I would be eligible for £4.06 working families tax credit.

If the limit for Working families tax credit is only £17 000 then our PWC shouldn't be eligible as with both partners working they easily earn more than that.

There are two types of working tax credits ; general WTC and then "the childcare element" of WTC.

I assumed the CSA would only count the general amount of WTC as that is paid to people on a "low income" whereas the childcare element of WTC can indeed be paid to people in receipt of a much higher income.

Maybe Kelloggs can clarify.

If they deem a PWC receiving childcare element of WTC as NIL income then ... well, that's just terrible IMO.

But I am pretty sure general WTC cut off this year is £17000. Last year it was £16,000 approx.

kelloggs36 wrote: »

They can't differentiate between types other than CTC and WTC, so regardless of how much WTC they get the PWC will be deemed to have a nil income.

Wow. I can see how that would really pee people off.

So a PWC with a household income of £55000 getting £4 wtc (childcare element) a week is deemed as having nil income to the CSA?

kelloggs36 wrote: »

Afraid so although that income seems still rather high - mine and my hubby's joint income was (a few years ago) about £35k per year and we didn't qualify for any childcare tax credits at all, so maybe they earn less than you think?

I've done calculations of £35000 where you get childcare element of wtc now. If you have 3 children. The thresholds get higher every year so it might have changed since you were claiming Kelloggs.

Still it doesn't seem right. Especially when on CSA1 the NRPs contribution does depend on the PWCs income. Classing a family earning over £30000 a year as no income when an NRP earning £10000 less than that would be classed as an income seems daft.