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  • FIRST POST
    Double Dip
    Child tax credit limit reduced to 26,000
    • #1
    • 13th Feb 12, 7:07 PM
    Child tax credit limit reduced to 26,000 13th Feb 12 at 7:07 PM
    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 ..."


    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.
    Last edited by Former MSE Helen; 09-03-2012 at 12:25 PM.
Page 1
    • JoanneNotts
    • By JoanneNotts 13th Feb 12, 7:25 PM
    • 853 Posts
    • 766 Thanks
    JoanneNotts
    • #2
    • 13th Feb 12, 7:25 PM
    • #2
    • 13th Feb 12, 7:25 PM
    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!
    I only comment on posts I have relevant understanding and knowledge of, I have worked as a Payroll Clerk for 19 Years first in Recruitment now in the Voluntary Sector. Had all sorts of battles over the Years with Housing Benefits, Tax Credits and got over 2000 compensation from CSA when they got it wrong for 2 Years Now CIPP qualified!
    • gillybean129
    • By gillybean129 13th Feb 12, 7:36 PM
    • 168 Posts
    • 69 Thanks
    gillybean129
    • #3
    • 13th Feb 12, 7:36 PM
    • #3
    • 13th Feb 12, 7:36 PM
    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
    • gillybean129
    • By gillybean129 13th Feb 12, 7:59 PM
    • 168 Posts
    • 69 Thanks
    gillybean129
    • #4
    • 13th Feb 12, 7:59 PM
    • #4
    • 13th Feb 12, 7:59 PM
    Surely those that are claiming benefits should be proactive in checking for any changes?
    Originally posted by copa feela
    Easily said unless you lead a busy life you don't think to check legislation it's kind of low on the agenda....
    • sarahg1969
    • By sarahg1969 13th Feb 12, 8:06 PM
    • 6,429 Posts
    • 10,821 Thanks
    sarahg1969
    • #5
    • 13th Feb 12, 8:06 PM
    • #5
    • 13th Feb 12, 8:06 PM
    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
    • By gillybean129 13th Feb 12, 8:07 PM
    • 168 Posts
    • 69 Thanks
    gillybean129
    • #6
    • 13th Feb 12, 8:07 PM
    • #6
    • 13th Feb 12, 8:07 PM
    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
    • By gillybean129 13th Feb 12, 8:14 PM
    • 168 Posts
    • 69 Thanks
    gillybean129
    • #7
    • 13th Feb 12, 8:14 PM
    • #7
    • 13th Feb 12, 8:14 PM
    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.
    Originally posted by copa feela
    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
    • By getzls 13th Feb 12, 8:22 PM
    • 721 Posts
    • 564 Thanks
    getzls
    • #8
    • 13th Feb 12, 8:22 PM
    • #8
    • 13th Feb 12, 8:22 PM
    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...
    Originally posted by gillybean129
    Don't go, we will all miss you I haven't looked for this but am aware of it. I remember hearing it on tv, maybe the news.
    • woodbine
    • By woodbine 13th Feb 12, 8:59 PM
    • 18,323 Posts
    • 24,707 Thanks
    woodbine
    • #9
    • 13th Feb 12, 8:59 PM
    • #9
    • 13th Feb 12, 8:59 PM
    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.
    Originally posted by gillybean129
    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?
    • JoanneNotts
    • By JoanneNotts 13th Feb 12, 9:12 PM
    • 853 Posts
    • 766 Thanks
    JoanneNotts
    Surely those that are claiming benefits should be proactive in checking for any changes?
    Originally posted by copa feela
    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
    I only comment on posts I have relevant understanding and knowledge of, I have worked as a Payroll Clerk for 19 Years first in Recruitment now in the Voluntary Sector. Had all sorts of battles over the Years with Housing Benefits, Tax Credits and got over 2000 compensation from CSA when they got it wrong for 2 Years Now CIPP qualified!
    • jetplane
    • By jetplane 14th Feb 12, 5:48 AM
    • 1,541 Posts
    • 3,594 Thanks
    jetplane
    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.
  • onetomany
    what happens if u have more than 1 child?
    • xylophone
    • By xylophone 14th Feb 12, 7:10 AM
    • 29,459 Posts
    • 17,936 Thanks
    xylophone
    http://www.direct.gov.uk/en/MoneyTaxAndBenefits/TaxCredits/DG_194914
    • mummyroysof3
    • By mummyroysof3 14th Feb 12, 7:21 AM
    • 4,318 Posts
    • 25,275 Thanks
    mummyroysof3
    thankyou for that link xylophone..seems we wont have to worry as hubby works 36 hours and earns less than 26000 and we have 3 children
    Have a Bsc Hons open degree from the Open University 2015
    • Marisco
    • By Marisco 14th Feb 12, 8:07 AM
    • 34,867 Posts
    • 106,620 Thanks
    Marisco
    All I'll say is, you ain't seen nothing yet folks!!!
  • melly1980
    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
    Originally posted by gillybean129
    what isnt fair is that the tax payer has been paying for your childs dance classes in the first place.
  • MrsManda
    This cap has been kept quiet by the media and politicians,
    Originally posted by Double Dip
    I don't think this has been particularly kept quiet. As other posters have said the HMRC doesn't really have an advertising budget but the information has been available. It was announced in the 2010 Budget, there's a link on the direct.gov website under Tax Credits
    http://www.direct.gov.uk/en/MoneyTaxAndBenefits/TaxCredits/index.htm

    and on the HMRC tax credit website: http://www.hmrc.gov.uk/taxcreditsbudget/index.htm

    It's been mentioned on here and other advice websites since it was announced and it's been mentioned by various politicians and media outlets. If you do an internet search for tax credits news or tax credit changes you get a lot of links from quite recently (last few days in some cases) all the way back to when the changes were first announced in the budget.

    With the way the economy is going and the general media attention surrounding benefits it's hardly been a secret that the benefits system is being changed.
  • DaisyFlower
    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
    Originally posted by gillybean129
    Why is it not fair? Surely as a parent you should be providing clothes for your child not other tax payers. Dance classes are a nice extra but not essential!

    The changes have been known about for ages and are on the HMRC site. Its 10 a week which equates to an extra 2 hours a week if you truly need to up your income.
  • melly1980
    Why is it not fair? Surely as a parent you should be providing clothes for your child not other tax payers. Dance classes are a nice extra but not essential!

    The changes have been known about for ages and are on the HMRC site. Its 10 a week which equates to an extra 2 hours a week if you truly need to up your income.
    Originally posted by DaisyFlower
    your talking to the enticklement generation here. Why should they work for sumfink that they are entickled to
    • MissMoneypenny
    • By MissMoneypenny 14th Feb 12, 10:07 AM
    • 5,179 Posts
    • 8,426 Thanks
    MissMoneypenny
    thankyou for that link xylophone..seems we wont have to worry as hubby works 36 hours and earns less than 26000 and we have 3 children
    Originally posted by mummyroysof3
    No worries until Tax Credits goes and become part of the Universal Credit.

    It seems that under UC, both parents will have work conditions put on them if they still want welfare payments for their children. The days of the state picking up the tab for a stay-at-home parent, seems to be over.
    Last edited by MissMoneypenny; 14-02-2012 at 10:13 AM.
    RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
    Read the sticky on the House Buying, Renting & Selling board.


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