Child tax credit limit reduced to £26,000

Double_Dip_2 · 13 February 2012 at 9:07PM

This is the discussion thread for the following MSE News Story:

"About a million letters with wrong information on child tax credits have been sent, which could put off claimants ..."

Read the full story:
HMRC sends wrong benefits warning to 1m families

Back to original post...

Received today letter from HMR&C saying that from April 2012 Child Tax Credits will no longer be paid if household income is in excess of £26k (£500 per week) & they have 1 child.
This cap has been kept quiet by the media and politicians, and I find it appalling.
Personally, my income is £26,700 and since 2009 our household income has reduced by 40%. I have worked for a retail bank for 30 years and receive no bonus, despite the opinion of the media. My wife is unable to find work after having lost her part time job because of the recession. Like millions of working people I pay several thousands of pounds in tax and national insurance every year. My wife has also paid tax and national insurance for over 20 years, and does not claim any welfare benefit.
There has been a lot of publicity regarding capping welfare benefits at £500 per week. Why should their income of £500 per week be tax free whilst my income of £500 per week is taxable. Surely all benefits should be liable to income tax.
Presumably there are thousands of households who will be badly affected by losing their Child Tax Credit in April 2012.

[Deleted User] · 13 February 2012 at 9:25PM

HMRC has no money for advertising. There are massive massive massive changes coming in over the next year to the PAYE system as it gears up for Universal Credit, very little advertising has been done. When I went to a training session about it last year the guy from HMRC asked how best to communicate these changes to the public and small employers and we said newspaper and television, but he told us they do not have the money! This is going to be a diasaster! I'm considering a career change!

gillybean129 · 13 February 2012 at 9:36PM

I have also had a letter today, I was a bit shocked as looking on the website it doesnt say anything about the £26K cutoff with 1 child. We are just over this threshold both work full time and I am really annoyed if this is the case as although it's only £10 a week it's a massive £545 per year which buys my daughter clothes and dancing classes and anything else she needs for school, nothing has been said about this. This just isn't fair:mad::mad::mad:

gillybean129 · 13 February 2012 at 9:59PM

copa_feela wrote: »

Surely those that are claiming benefits should be proactive in checking for any changes?

Easily said unless you lead a busy life you don't think to check legislation it's kind of low on the agenda....

sarahg1969 · 13 February 2012 at 10:06PM

It's not just those on benefits who are having their incomes cut. We don't receive tax credits, but DH who is self-employed, is struggling in the current climate. Just like everyone else, we're having to make sacrifices. Someone who is only going to be £10 a week worse off won't have to make as many cuts as we've had to.

gillybean129 · 13 February 2012 at 10:07PM

Now I remember why I don't post on here, it's full of people who offer little support and advice and just take pleasure in sniping at posts.

gillybean129 · 13 February 2012 at 10:14PM

copa_feela wrote: »

I see nothing but good advice - people need to keep on top of their affairs, it is key to "moneysaving". Sounds to me like you don't post here because you can't cope with people offering a different viewpoint to you.

No it's not you're just having a go, and there are loads more on here too, it all here ' be nice to all moneysavers' why would a forum need to say that to posters?

I for one am out...:(

getzls · 13 February 2012 at 10:22PM

gillybean129 wrote: »

No it's not you're just having a go, and there are loads more on here too, it all here ' be nice to all moneysavers' why would a forum need to say that to posters?

I for one am out...:(

Don't go, we will all miss you:D I haven't looked for this but am aware of it. I remember hearing it on tv, maybe the news.

[Deleted User] · 13 February 2012 at 10:59PM

gillybean129 wrote: »

Now I remember why I don't post on here, it's full of people who offer little support and advice and just take pleasure in sniping at posts.

actually thats not true,the vast majority of people seeking help with benefits get help on here,this thread isnta bout anyone needing help its about changes in the law which have been well documented over the last few months
the way i see it is that the vast majority of working people assume that benefit changes only affect the "scum and the scroungers"and have breathed a sigh of relief,now they are waking upto the fact that this govt is targeting them as well and they dont like it........
well we are all in this together are we not?

or is that we are all in this as long as we aren`t affected?

[Deleted User] · 13 February 2012 at 11:12PM

copa_feela wrote: »

Surely those that are claiming benefits should be proactive in checking for any changes?

I do agree Copa Feela, however the new system will reley on everybody a) having access to the Internet and b) knowing how to use a PC and c) self declaring most changes. Now I know my own Mother, in her 50's is excellent at what she does as a manual worker but does not have a clue how to even turn on a PC, so how would an Elderly or Disabled or someone with Learning Difficulties cope?
I also know from the job I do that a lot if small employers only use services like mine when they a) get in a mess or b) get fined by HMRC for not doing something correctly.
I pointed out to HMRC Fred Bloggs the Builder is probably very good at building houses (where as I wouldn't know where to start) but he probably has very little knowledge of payroll (which I do) this does not mean Fred is thick!!! It's just horse's for courses. Now probably usually Fred scribbles down each week what he has paid his lads knowing his accountant will sort it all out and periodically, when it rains and Fred nips in tell him what he owes and Fred is very happy with this. Under Real Time Infomation, Fred has to purchase and learn how to use a PC. He then, everytime he pays one of his lads, has to complete and send this information to HMRC on a form with over 100 different fields, including details of who this lad lives with and his passport number! If Fred gets this information wrong then potentially this lads Universal Credit is also wrong. This could have massive implications that will always effect those at the bottom if the food chain!

HMRC man agreed with me :rotfl:

jetplane · 14 February 2012 at 7:48AM

It is the way that the change has been worded that means it is taking everyone by surprise.

The government announced that in 2011 the earnings limit was reduced from 50k to 40k and everyone thought yes well 50k is too much to get benefit and took no notice. Then, rather than saying in 2012 the earnings limit will be reduced to 25k, which might have snapped some heads up, the government announced that in 2012 the earnings limit will be removed and tax credits will be reduced accordingly. Most people would not realise the implications of this, and indeed it is only by doing a calculation that this becomes evident.

These changes were made in the Emergency Budget & Spending Review in 2010 which at the time announced changes up to 3 years head so people sort of dealt with the immediate changes, panicked about universal credit and overlooked the stringent cuts inbetween.

Child tax credit limit reduced to £26,000

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