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To wonder what the threshold is for working tax credits.

(21 Posts)
Owchyleg Fri 27-Mar-15 19:03:59

We have 2 children under 3. I work part time, partner self employed, we earn (what oil thought was) a modest average household income (but struggle with bills, childcare costs etc). Found out today we aren't entitled to any working tax credits. Anyone know what the earning limit is? It may be worth me not working!

ChocolateTeacup Fri 27-Mar-15 19:04:54

16k I think

ChocolateTeacup Fri 27-Mar-15 19:06:05

LMGT4U

MangoJuggler Fri 27-Mar-15 19:07:21

Hur hur Teacup. Well played!

RJnomore Fri 27-Mar-15 19:07:42

What's your income?

Did you get refused for child tax credit or just working? Working is a lower cut off I think (used to be anyway)

thatstoast Fri 27-Mar-15 19:09:00

If only it was as simple as googling it. First things first, do you mean working tax credits or child tax credits? If child tax credits, it depends how much childcare you pay for.

It does depend on a lot of factors, it's not as simple as a one size fits all threshold. I wish it was that simple but it's not.

Jackieharris Fri 27-Mar-15 19:09:12

Are they calculating that on your 14/15 income or 13/14?

How much are your average weekly childcare costs? That will massively affect your entitlement?

Were you on mat leave recently? You may be able to claim paye back.

kinkyfuckery Fri 27-Mar-15 19:13:45

thatstoast She said working tax credits twice already.

ChocolateTeacup Fri 27-Mar-15 19:20:00

First threshold for those entitled to Child Tax Credit only £16,105

HoppityVoosh Fri 27-Mar-15 19:21:15

On a "modest" income I wouldn't think you'd get wtc. We have what I'd call a low income and only get ctc. Depending on how many children you have and how much your childcare is you may get some ctc or the childcare element.

Owchyleg Fri 27-Mar-15 19:25:00

I guess we aren't entitled then. I am on Mat leave at the moment (currently earning zero as I have come to the end of the statutory of period). I will call them about this aspect of the claim as if I remember correctly I was asked about pay before Mat leave started.

HoppityVoosh Fri 27-Mar-15 19:29:53

In April when the new tax year starts they'll ask for your 2014/15 income, I'm assuming a good portion of that will be on maternity pay if you're on the unpaid bit now. Also, you take off £100 for each week you had statutory maternity pay up to £3900. You pay be entitled this year.

thatstoast Fri 27-Mar-15 19:31:06

There's a table here that may be of use:

https://www.gov.uk/government/publications/tax-credits-entitlement-tables-working-at-least-16-hours-and-paying-childcare/tax-credits-entitlement-tables-working-at-least-16-hours-and-paying-childcare

Owchyleg Fri 27-Mar-15 19:37:10

Also, how does the childcare element work if I am already paying into childcare vouchers through work?

Viviennemary Fri 27-Mar-15 19:38:07

Nobody knows. That's the problem. It takes armies of people to work it out and then they get it wrong half the time. I thought all these tax credits were being replaced with universal credit.

OhMjh Fri 27-Mar-15 19:38:47

16k but anything above about 10k means you won't see much.

BaronessEllaSaturday Fri 27-Mar-15 19:39:22

You can't claim the childcare element if you get the vouchers through work nor can you claim while you are in the final 13 weeks of maternity leave which is unpaid.

Owchyleg Fri 27-Mar-15 19:39:50

It's a bloody minefield, hence why we've only just got round to sorting out the application. I was fairly optimistic we were entitled to some help but it seems not confused

BaronessEllaSaturday Fri 27-Mar-15 19:43:49

Slight correction you can only claim the childcare element on anything you pay for childcare in cash above the total of the vouchers so if you get £70 a week in vouchers and the childcare costs £100 you can claim £30 as your childcare costs.

Owchyleg Fri 27-Mar-15 19:45:39

Thank you baroness. I will look into it.

poppystellar Mon 08-Jun-15 20:15:46

Can anybody help me understand whether I'd be better off claiming childcare vouchers? It is driving me nuts!! I am a single parent with sole parental responsibility. I work 22 hours a week, pay basic rate tax on a low income and currently get 70% of my weekly childcare costs paid via tax credits (I get both working tax credit and child tax credit) I have tried the HMRC online better off calculator and can't get an answer that makes sense to me!! Does anyone know whether as a general rule I'd be better off sticking with tax credits or going for the vouchers? I work term time only so I'm really lucky I don't have to pay for childcare in school holidays, my childcare costs for the year tend to be about £1800.

Any help greatly appreciated. I THINK I'm better off with tax credits but am trying to check so that I can apply for the vouchers if they're a better deal, before they get changed this Autumn. I just about scraped a C grade in my Maths GCSE many many years ago and anything financial tends to leave my brain feeling like it's been dipped in treacle and left out in the sun for too long...

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