to think Martin Lewis (MSE) has got this wrong re. tax credits

[bytheMoonlight]

to the piece re. Working Tax credits

According to him, a household earning £58,900, from April, will be eligable for WTC if working correct hours.

If this were true, we would receive WTC, which we don't.

So AIBU to think he has it wrong?

Sorry link here

By the moonlight - can;t get your link working. I would be grateful if you could try again, as I would be really interested to read this informaiton.

Thanks

link

Do you pay for child care? My thinking is that maybe you Don't and that's what makes the difference?

Although I'm no expert.

That chart says maximum income, not that your would get tax credits for that income.

you*

I can't understand that either. Our income is less than that (but more than £42k) and we were told we werent eligible for any tax credits. We pay childcare too.

How many kids?

Same as Frillymilly - less than 58 but more than 42, 2 children and we pay for childcare. HRMC won't divulge the actual calculation so really hoping someone here can explain how it works. Don't necessarily think that we should get it but would like to understand it.

I find it so confusing I phoned as was told while I was off on mat leave I could claim as only receiving sat mat pay for 8 months however as based on last years income its a no!! I don't understand!!!

This is how they work out Tax Credits:

They put loads of balls in a big cagey thing and turn the handle. The numbers come out one by one and that gives you your tax credits figure.

This week they used "Guinevere"

Two children. We earn £35k.

If I looked at that link I would think we could claim.

But we can't so he is obv wrong

it must be wrong as i have 4 children am a lone parent and have been receiving the minimum £10 odd payment, I have had a letter to say that my credits will stop. I earn more than £35k but noway near the £70k it says is cut off on his table. I pay childcare costs for fulltime nursery for a 2yr old and after anf before school clubs for a 10 and 5 yr old.
I do receive maintenance from x which is declared but disregarded for tc purposes?

Big laugh at you old slag!

Somebody this week told me that from april the cut off will be 18k? That sounded ridiculous to me.

Cazm2 I am on mat leave and from this comin apr til sept when I go back I will receive just smp I was told to add that to how much I will earn from sept til next april. They said they will use that and adjust my tax credits accordingly. You also disregard the 1st 100 pounds of smp when giving them your earnings. Apparently not sure if I trust this info!

bythemoonlight - do you both work?

Because by my understanding you would not be eligible for Family Tax Credit at income level of £35k.

You could however be eligible for some Working Tax Credit if you both work and your children are with a childcare provider? But this is dependent on the amount of childcare you are claiming for I think.

KWL51 - the minimum £10 payment sounds like Family Tax Credit, the threshold for that with 4 children is £45,400 - would that make more sense?

Have you had a letter saying your Family Tax Credit will stop, your Working Tax Credit will stop, or both?

Your childcare element is in the Working Tax Credit calculation.

I think.

I am not very good at this stuff but had a little time working with some of the figures (working in council trying to advise Councillors so they could pass on their advice to constituents - I was a bit of a chocolate fireguard I think!) and the important thing is to get your head around the two separate types as they have different thresholds. And obv you don't need WTC if you have one SAHP so many people only get one or the other anyway.

Plus we all just say 'tax credits' but really it is two benefits.

ButteryBiscuitBase yes from April the cut off for a couple with NO children will be £18k, but you will be a couple with one child so the cut off for Family Tax Credit is £26k.

I realise two things -

1. I think I am in this thread alone so I may be wasting my time? But I am a bit geeky and DS2 is sleeping so why not read the HMRC website?

2. I have this awful feeling I have used all the wrong terms in my post above because the more I think about these effing credits the more confused I get.

No wonder all the people coming for help used to go home looking worse than when they arrived

Pullupapew, I am just as confused about the whole bloody lot. DH and I together earn about £36K and we were sent a letter saying that our tax credits would be stopped, too. We don't pay for childcare as I am a childminder so of course DS is with me.

Seems I should actually read HMRC website, too to check what's what - that is, if I can make head of tail of it.

I'm listening PullUpAPew and am just as confused and guess I need to look at the HMRC website. Can't get the Martin Lewis link to work but it's probably just this computer at work that's playing up

DH and I earn around £38k together and like Alliwant we were sent a letter saying that our tax credits would be stopped. We have 1 DS and don't pay for child care

Yes, at 36k or 38k with only one child, child tax credits would stop, because the level for one child is 26k.

BUT if you were working and claiming the childcare element then I think you should still be eligible for that, depending on the amount of childcare you are claiming for.

This interests me. I've never understood tax credits

I've always thought they've got it wrong for us, but it's so complex I can't be sure

I understand by CTC will stop in April.

But that link says that I should be eligable for WTC.

The cut off for all benefits, except CB, will be 26K.
That is what the benefit cap is.
So, if you are earning 26.5 k, working full time, and have been getting the child care element of WTC, this will stop.