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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

to think tax credits office just pluck random figures out of thin air when deciding how much to give claimants.

79 replies

littleSpud · 21/07/2014 10:40

dh has had to take a pay cut of 9k, taking us from 32k to 23k. we have 3 dcs I am a sahm at the moment

when he was on 32k, we got about 60 a week in tax credits. I did an online calculation which said if he was on 23k we would get about 130 a week

we got our award letter today and we are only getting 70 a week based on his new income!

how the fuck can we take an almost 10k income drop and only get another ten quid a week. it does not make any sense. we are going to be skint and its shit. I genuinely think they just choose random figures as I spoke to my friend who's dp is on 22k (so tiny bit less than dh) and for 3 dc they get 150 !

my youngest dc 4 months old so before the daily mail readers start kicking off I will be looking for work soon. sooner than I thought by looks of it Hmm

OP posts:
morethanpotatoprints · 30/07/2014 12:11

Its never the amount they say on the calculator, I too have no idea how they work it out.
I'm sure there's some method in their madness.

Missunreasonable · 30/07/2014 12:11

There is a 2.5k income disregard and I assume that the pay decrease is effective from today rather than the beginning of the tax year (April) so the decrease will be pro rata.
So I am assuming that your tax credits are based on earning £32k for April-July and £25.5k for July - April 2015.
There are other things that affect the amount of tax credits you will receive including any overpayments or underpayments from last year and any reduced or increased pension contributions.

It is a minefield but you can work it out yourself using the examples and calculation breakdowns that the tax credit website have available.

EhricLovesTheBhrothers · 30/07/2014 22:04

See I've always found the calculator to be pretty spot on. You have to be careful about which year income you use in it but generally it seems to be accurate. Not to the last £ of course but close.

roomfullofstars · 30/07/2014 22:39

We seem to be relevant and in context to EverythingIsAwesome

We have 3 DC and an income of £19k. We get £167 a week.

I've never been able to make sense of it and over payments put the fear of god into me. Sadly, we are dependent on tax credits.

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