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    • milliescrazyhouse
    • By milliescrazyhouse 10th Aug 18, 7:25 PM
    • 13Posts
    • 1Thanks
    milliescrazyhouse
    Tax credits and income
    • #1
    • 10th Aug 18, 7:25 PM
    Tax credits and income 10th Aug 18 at 7:25 PM
    Can anyone advise where I stand with the following:-My husband is likely to earn more this year than the estimate I gave in April by approx 1000-1500.
    He changed job last year finally securing full time employment,whilst I am a receiving carers allowance.
    We have 3 children with 1 receiving the disability element.
    His earnings are as follows:-

    16/17 7425
    17/18 11377
    17/18 estimated 17000 in April

    If any other info is needed please just let me know,many thanks
    Last edited by milliescrazyhouse; 10-08-2018 at 7:32 PM. Reason: Added more info
Page 1
    • Darksparkle
    • By Darksparkle 10th Aug 18, 7:57 PM
    • 5,344 Posts
    • 3,482 Thanks
    Darksparkle
    • #2
    • 10th Aug 18, 7:57 PM
    • #2
    • 10th Aug 18, 7:57 PM
    I assume you mean 2018/19? Call them and update your income, they'll readjust your claim.
    • milliescrazyhouse
    • By milliescrazyhouse 10th Aug 18, 8:30 PM
    • 13 Posts
    • 1 Thanks
    milliescrazyhouse
    • #3
    • 10th Aug 18, 8:30 PM
    • #3
    • 10th Aug 18, 8:30 PM
    Thank you Darksparkle,Yes sorry 18/19,I will update income online,but am worried as we have received just over 90 in working tax credits(the total for this tax year) and if we will have to pay for dentistry we have just had,with the rest as child tax credits.
    Also if there will be a big drop in our award.
    • Darksparkle
    • By Darksparkle 11th Aug 18, 8:58 AM
    • 5,344 Posts
    • 3,482 Thanks
    Darksparkle
    • #4
    • 11th Aug 18, 8:58 AM
    • #4
    • 11th Aug 18, 8:58 AM
    Tax credits will reduce by 41p for every 1 earned so an additional 1500 will reduce your claim by 615.

    On an income of 18,500 youre no longer entitled to an NHS exemption certificate so when it runs out you won't get another.
    • calcotti
    • By calcotti 11th Aug 18, 9:44 AM
    • 964 Posts
    • 666 Thanks
    calcotti
    • #5
    • 11th Aug 18, 9:44 AM
    • #5
    • 11th Aug 18, 9:44 AM
    Not sure if this is right. If income is now 18,500 aren't they going to get the 2,500 discount (for this year only) bringing the income used in the calculation down to 16,000 which is then below the 16,105 income threshold for Child Tax Credits only which means that none of the income is taken into account. Obviously next year the 18,500 will be used and a deduction from the maximum award will be made.

    Tax Credits have always been very confusing!
    • Darksparkle
    • By Darksparkle 11th Aug 18, 10:54 AM
    • 5,344 Posts
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    Darksparkle
    • #6
    • 11th Aug 18, 10:54 AM
    • #6
    • 11th Aug 18, 10:54 AM
    Not sure if this is right. If income is now 18,500 aren't they going to get the 2,500 discount (for this year only) bringing the income used in the calculation down to 16,000 which is then below the 16,105 income threshold for Child Tax Credits only which means that none of the income is taken into account. Obviously next year the 18,500 will be used and a deduction from the maximum award will be made.

    Tax Credits have always been very confusing!
    Originally posted by calcotti
    As I mentioned on a previous post you commented on, the 16105 threshold doesn't apply as it is not a CTC only case.
    • milliescrazyhouse
    • By milliescrazyhouse 11th Aug 18, 12:40 PM
    • 13 Posts
    • 1 Thanks
    milliescrazyhouse
    • #7
    • 11th Aug 18, 12:40 PM
    • #7
    • 11th Aug 18, 12:40 PM
    Thanks Darksparkle, as far as I!!!8217;m aware our award is currently based on 17859(17000 for my husband and 3359 carers allowance for me) with the 2500 disregard,due to the change in earnings from last year,so I assume adding the extra 1500 will mean they will deduct our award by 615 this tax year.
    If I!!!8217;ve got that right at least I know where I stand,

    Can I just check if NHS entitlement will still run till the end of this tax year,or will it end straight away.
    • Darksparkle
    • By Darksparkle 11th Aug 18, 1:59 PM
    • 5,344 Posts
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    Darksparkle
    • #8
    • 11th Aug 18, 1:59 PM
    • #8
    • 11th Aug 18, 1:59 PM
    Thanks Darksparkle, as far as I!!!8217;m aware our award is currently based on 17859(17000 for my husband and 3359 carers allowance for me) with the 2500 disregard,due to the change in earnings from last year,so I assume adding the extra 1500 will mean they will deduct our award by 615 this tax year.
    If I!!!8217;ve got that right at least I know where I stand,

    Can I just check if NHS entitlement will still run till the end of this tax year,or will it end straight away.
    Originally posted by milliescrazyhouse
    What's the expiry date on your certificate?
    • milliescrazyhouse
    • By milliescrazyhouse 11th Aug 18, 2:46 PM
    • 13 Posts
    • 1 Thanks
    milliescrazyhouse
    • #9
    • 11th Aug 18, 2:46 PM
    • #9
    • 11th Aug 18, 2:46 PM
    We never received a card this year as far as I can remember,although we were packing to move at the time so can!!!8217;t say for sure.

    As for the amount I assume it is based on,this is only a guess,2017/2018 total income was 14616.
    2016/2017 was 10650.
    This years has been estimated as 20359 currently until I update with the extra income.

    With the 2500 disregard I kind of get lost.

    Because the last award notice had 90 WTC I have assumed we could get NHS exemption.
    Last edited by milliescrazyhouse; 11-08-2018 at 3:13 PM.
    • Mollycat13
    • By Mollycat13 11th Aug 18, 3:15 PM
    • 92 Posts
    • 80 Thanks
    Mollycat13
    Re. NHS exemption.

    If you put your details into the following link, it will let you know if you hold a current exemption.


    https://services.nhsbsa.nhs.uk/check-for-help-paying-nhs-costs/start-exempt
    Last edited by Mollycat13; 11-08-2018 at 3:42 PM.
    • milliescrazyhouse
    • By milliescrazyhouse 11th Aug 18, 3:18 PM
    • 13 Posts
    • 1 Thanks
    milliescrazyhouse
    I did check on there,but it couldn!!!8217;t find me
    I know we had the 2500 disregard last year due to the job change in December, we estimated 15300 and earned 14616.
    I assume the 20359 estimated they will disregard 2500 this tax year.

    Just wish the award notices were easier to understand.

    I just worry in case we have a penalty if we are not entitled.
    Last edited by milliescrazyhouse; 11-08-2018 at 3:23 PM.
    • Mollycat13
    • By Mollycat13 11th Aug 18, 3:21 PM
    • 92 Posts
    • 80 Thanks
    Mollycat13
    Apologies, I got the criteria for NHS exemption muddled with free school meals. If you are in receipt of any tax credits and you income in the previous tax year was less than 15,276, you would qualify for exemption so it looks like you should be ok for now.

    Sorry if I worried you and I hope I've set the record straight.
    Last edited by Mollycat13; 11-08-2018 at 3:46 PM.
    • milliescrazyhouse
    • By milliescrazyhouse 11th Aug 18, 3:44 PM
    • 13 Posts
    • 1 Thanks
    milliescrazyhouse
    Yes 90 received as WTC for this tax year(2018/2019)

    So we are no longer entitled? Well as least I know.
    • Mollycat13
    • By Mollycat13 11th Aug 18, 3:48 PM
    • 92 Posts
    • 80 Thanks
    Mollycat13
    Yes 90 received as WTC for this tax year(2018/2019)

    So we are no longer entitled? Well as least I know.
    Originally posted by milliescrazyhouse
    I've just updated my post with the correct details, I'm sorry, I was mistaken.
    • milliescrazyhouse
    • By milliescrazyhouse 11th Aug 18, 3:53 PM
    • 13 Posts
    • 1 Thanks
    milliescrazyhouse
    Thank god for that was worried I was going to get a penalty charge.
    I did think this would be our last year of entitlement,as I know we will earn to much next year,but just wanted to double check as I have a lot of treatment due.
    Thank you for your help Mollycat
    • Darksparkle
    • By Darksparkle 11th Aug 18, 4:52 PM
    • 5,344 Posts
    • 3,482 Thanks
    Darksparkle
    We never received a card this year as far as I can remember,although we were packing to move at the time so can!!!8217;t say for sure.

    As for the amount I assume it is based on,this is only a guess,2017/2018 total income was 14616.
    2016/2017 was 10650.
    This years has been estimated as 20359 currently until I update with the extra income.

    With the 2500 disregard I kind of get lost.

    Because the last award notice had 90 WTC I have assumed we could get NHS exemption.
    Originally posted by milliescrazyhouse
    You said in the OP you estimated this year as 17000 but on this post you've said 20359?

    If you estimated 20359 then you weren't entitled to the NHS exemption.
    • Darksparkle
    • By Darksparkle 11th Aug 18, 4:59 PM
    • 5,344 Posts
    • 3,482 Thanks
    Darksparkle
    Apologies, I got the criteria for NHS exemption muddled with free school meals. If you are in receipt of any tax credits and you income in the previous tax year was less than 15,276, you would qualify for exemption so it looks like you should be ok for now.

    Sorry if I worried you and I hope I've set the record straight.
    Originally posted by Mollycat13
    It's based on the income used to calculate the tax credit claim, not necessarily the previous years income. OP isn't entitled this year and if claiming free dental treatment without a valid exemption certificate then she may be charged a penalty.
    • milliescrazyhouse
    • By milliescrazyhouse 11th Aug 18, 6:41 PM
    • 13 Posts
    • 1 Thanks
    milliescrazyhouse
    I realise I put my husbands estimated earnings 17000 but didn!!!8217;t add the carers allowance in my first post so total estimated 20359.

    Last year estimated was originally I think 11000 then I updated estimate to 15300, actual 14616.(changed in estimate was December 2017)

    It was just the fact that we had received some WTC this tax year why I was not sure.

    If we are not entitled to a NHS exemption then fair enough just want to know where we stand.
    • milliescrazyhouse
    • By milliescrazyhouse 11th Aug 18, 6:50 PM
    • 13 Posts
    • 1 Thanks
    milliescrazyhouse
    I assumed our award was based on 20359 minus a 2500 disregard due to the increase being more than 2500.
    So it should be 17859 they would use this tax year,although I do not know if that is right?
    • Icequeen99
    • By Icequeen99 11th Aug 18, 9:58 PM
    • 3,595 Posts
    • 2,425 Thanks
    Icequeen99
    I was working on the basis that with the increased income it appears that they no longer qualify for WTC and therefore it becomes a CTC only award. Sorry if I'm missing the point.
    Originally posted by calcotti
    You are assuming they no longer qualify for WTC - they do qualify for it and the elements will continue to be included in their award but they won't receive any payments of WTC due to the level of their income. They are not a CTC only case because they still qualify for WTC.

    IQ
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