Any lone parents earning around 30k? Tax credit question.

[amicable]

Hi

Am trying to get my head around the child tax credits system. When I had a recent 'lone parent interview' at the job centre, the woman seemed to indicate that if I had a 30k job that I would not get anything towards child care, and also I have heard that if you earn over 30k you only get minimal child tax credit (and vaguely remember David Cameron saying that this would be reduced to 28k).

But when I went on 'entitled to' it seemed to say that I'd get around 9k a year credits, if I was working a 30k job (with 3 kids in childcare).

So my question is, if you are a lone parent earning around 30k do you receive any child tax credits, or anything towards child care.

Many thanks

[Knackeredmother]

I don't have an answer but am bumping for you

[Monty27]

I have two teens and earn in that bracket, I get nothing for the older teen now and about £50 pm CTC for the younger one. Nothing for childcare obviously. I'd say you'd qualify tbh but don't know how much. Sorry can't help any more.

[GRW]

I have one child who is now 13 so I'm no longer paying for childcare, and I get £540 a year, on an income of about 30k.

[DoesBuggerAll]

You can work it out for yourself if you go onto the inland revenue website tax credits section. IIRC your entitlement is about £2500 per child plus the £545 family element, so a little over £8k. Then you take off 41% of the amount you earn that is over the threshold (was £16190 now a bit less to take account of the higher tax free earnings personal allowance). £30k is roughly £15k over the threshold so you'll lose about £6k and be left with £2k-ish. I don't know about the childcare bit though as I don't use it.

[gillybean2]

Entitled to only shows this current year. It may well be that the changes you mention are coming into affect next year. You'll have to do some budget research to see what Mr Cameron actually changed and when it will take effect.

[threetimesabridesmaid]

Last year, based on 31k, I got half my childcare paid for (£290 towards £580 monthly bill). This year, I've just been awarded £450ish as my earnings last yr were £26kish as I was on mat.leave for 5mths. I haven't done the calculations (the website was way out when i looked whilst still pregnant) but I'd probably be better off working 3 days instead of 4!

[threetimesabridesmaid]

Last year, based on 31k, I got half my childcare paid for (£290 towards £580 monthly bill). This year, I've just been awarded £450ish as my earnings last yr were £26kish as I was on mat.leave for 5mths. I haven't done the calculations (the website was way out when i looked whilst still pregnant) but I'd probably be better off working 3 days instead of 4!

[DoesBuggerAll]

Info on tax credits here:

www.hmrc.gov.uk/rates/taxcredits.ht

CTC family element = £545
Child element (per child) = £2555

So 3 children = £2555*3 + £545 = £8210

First threshold for those entitled to Child Tax Credit only = £15,860
Withdrawal rate = 41% (i.e. for every pound you earn over the threshold your tax credits award is reduced by 41 pence)

If you earn £30,000 then you will have the £8210 reduced by £5797.40 so you'll get £2412.60.

[DoesBuggerAll]

Oh, and you can get 70% of eligible childcare costs covered (up to £300 per week).

[ddrmum]

Hi, i earn got just over £30k and CTC. Not sure what, if anything, I'll get this year as I'll only have one in nursery as 2nd son starts school. I think you can also claim towards wraparound care in the school if this is provided.