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Tax Credits gone down!

(5 Posts)
clarke Wed 09-Jul-08 21:56:24

I have been back at work for a year and had 80% of the childcare paid for but now i get less than half that. Just found out when got in from work - not sure i can afford it any more but can't afford not to work - what am i going to do?

bethoo Wed 09-Jul-08 21:58:36

why has it gone down? have i missed something? <<<panicking>>>>

LadyMuck Wed 09-Jul-08 22:01:30

It is an insane system I'm afraid. Tax credits are based on your income from the previous tax year. So if you hadn't been working in 06/07 you would have had no income so in 07/08 you would get plenty of tax credits (as well as your employment income). For 08/09 your tax credits are based on your 07/08 income so would decrease.

You could talk to CAB who will be able to do some "better off" calculations? Will your child be eligible for any funding (once they turn 3).

clarke Wed 09-Jul-08 22:03:55

Im not sure why and couldn't get hold of them tonight but i have always kept them informed of what we earn and now they say they have overpaid us but even without the overpayment being paid back its less than half.

Last year i earned £8k - on maternity leave and partner earned £15k - i don't understand how it works. People i now have said its like a second income and they earn more??????????????

HappyMummyOfOne Fri 11-Jul-08 07:49:12

How much of a difference in income do you have between 06/07 and 07/08? They work on the previous year so if in 06/07 you were on maternity your income was obviously lower than the next tax year etc.

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