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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

to be pissed off that DH has had a bonus cos tax credits will take loads of money off us

368 replies

FuckingTaxCredits · 23/03/2015 18:06

have nc doubt the dm readers will be out in force for this one

dh has had an annual bonus of 2700

which should be awesome news but I nearly cried when dh told me

as this happened a few years ago as well, and i know that when I do our tax credits renewal they will end up royally screwing me up the ass and taking loads off us. even though dh will prob come out with 2k, max, of his bonus, if he is lucky, but tax credits will take the whole amount off us

so it will hit ME in MY pocket cos dh is doing well at work

bonuses should be just that, a FUCKING BONUS

so pissed off

OP posts:
peacefuleasyfeeling · 23/03/2015 21:26

Sheesh, some of you lot are so mean this evening. Mee-ow! Poor OP. And snigger at Fanjo. Isn't OP's problem also to do with the fact that TCs aren't calculated on a nice "scale" model: "So, you've got a bit more coming in? We'll adjust by reducing TC by the same amount, then." When I checked to see if we'd be eligible for TC, I put our details in the online calculator and was thrilled to see we would indeed qualify for something like £50 / month. Then I realised I'd made a mistake with DP's salary; I'd entered a rounded figure and omitted close to, but not quite, £200. Ran the calculator again: no dice. Over the threshold. I played around with the numbers and narrowed it down to £50; had we earned £50 less between us we'd have been eligible to claim close to £600 in TC for the year. Oh well, lucky we're frugals Grin.

SoonToBeSix · 23/03/2015 21:37

Peaceful so why not pay £50 a year into a pension.

HesBeenAVeryNaughtyBoy · 23/03/2015 22:01

Not everyone has a pension we certainly can't afford to put anything in, every month our bills put us in a negative!

AwakeCantSleep · 23/03/2015 22:26

I think the point soon makes is that if peaceful paid £50 into a pension (as a one-off) she'd get £600 in tax credits that she currently isn't entitled to.

peacefuleasyfeeling · 24/03/2015 07:15

Oooh, Soon, I didn't realise that there was a way around it. We manage anyway, as, if your outgoings aren't too big, the threshold is actually quite high. I was surprised to see that you're considered in need of assistance with that level of joint income. We'd get by on a lot less if we had to. But it's got me thinking; with it we wouldn't have to think twice about extras like swimming lessons / music lessons / dance classes / bike for DD1/ or indeed a family holiday. But that doesn't sit quite right either. What is actually considered essential? We could probably do alright without CB too, a bit more meagre still, but doable. But that's another thread.

ssd · 24/03/2015 07:25

wheres the op

gamerchick · 24/03/2015 07:35

Hidden the thread if she has any sense.

ssd · 24/03/2015 07:48

thing is, what does she expect, sympathy?

she's getting tax credits because as a family they are on a low combined wage, her dh gets a bonus, so must be good at his job, this must be taken into account when she does her renewal, or she can phone them up and they'll adjust her payments accordingly.

she wont lost £2700 off her tax credits, she'll lose about £800.

if shes pissed off with her dp cos they keep their money separate and he'll get more than her then she needs to sort that out with him.

HelpMeGetOutOfHere · 24/03/2015 07:50

Whilst tax credits are fab in theory. (Although has that bolstered the ridiculous rise in the cost of housing?) often they are a trap for families on low income.

When ds was born almost 18yrs ago we weren't entitled to any credits and so when we needed more money, Christmas, summer or needed a new car as well as saving we could get extra jobs, work
Overtime etc and not worry about how much less tax credits would be paid the following year.

The old mumsnet line of get a better paid job work more hours etc. it's not always possible. Many jobs don't offer overtime for example or they can't work an extra job around the main job.

Those who are in receipt of tax credits are often stuck with the income that they are have unless they find something that takes them way above the tax credit threshold and contrary to MN belief not everyone can earn £45k plus a year (I have no idea what tc cut off us I'm guessing around £39k)

So whilst I see many posters thoughts process that yes they have extra income so should be happy to receive less, it is a bit of a kick in the teeth that the family effectively will see very little of the reward of her h's hard work.

PtolemysNeedle · 24/03/2015 07:58

It's stories like this that show that tax credits are too generous.

The system is completely screwed up. Not OPs fault, but instead of being pissed off she could try being thankful that tax credits have subsidised her life and holidays for so long. It would be a much healthier attitude.

Happyringo · 24/03/2015 07:59

I appreciate it feels like a kick in the teeth when the taxman takes a chunk of hard earned cash. But another one here I'm afraid who's not had a holiday since 2011 receiving zero assistance. (And the taxman takes a chunk off us every month, not just on an annual bonus...)

seriouslypeedoff · 24/03/2015 08:00

I am confused. He gets £2700 bonus, £2000 of it goes in his account. Tax credits get reduced and OP loses £700, but the household is £1300 better off. So why can't the shortfall be taken out of the 2k in is account. Is it because the 2k is being used for a holiday and credit cards?

Surely your dh should give you the missing £700 leaving £1300 for the holiday and credit cards? Since this happened before, surely you knew this would be the case? If he won't or can't because the 2k is spoken for, did you not take this into consideration when booking the holiday?

To me it seems you want to keep the 2k and tax credits. Which isn't going to happen.

Or have I completely misunderstood? Which is entirely possible.

gamerchick · 24/03/2015 08:01

So basically ssd you want her to come back so the kicking that's been dished out can continue? Hmm

I was royally peed off when the husbands bonus was taxed till it bled and I had a right old moan about it. People are allowed to moan.

rollonthesummer · 24/03/2015 08:07

Can you spell out exactly what you mean, OP?

PrimroseEverdeen · 24/03/2015 08:14

We earn too much to qualify for tax credits but certainly can't afford to go on holiday. Don't see why the taxpayer should be subsidising yours.

Original poster
FuckingTaxCredits · 24/03/2015 08:29

right thanks for all the replies

I wasn't around last night so only just read through them all

to clarify - I do not expect to keep the bonus AND keep the tax credits as they are. Of course its only fair if they are adjusted

HOWEVER. the tax credits system will do our renewal based on as if we had received the whole 2700. so therefore (roughly) our tax credits will go down by an additional 700, but we will never have had the 700 to start with. does that make sense? sorry I am not good at explaining but hope you get what I mean?

dh would put the money in my account if I asked, he is not a twat or financially abusive or whatever Hmm

but we have BOTH decided that he pays off the credit card and the holiday balance. and then when the new amounts of tax credits are decided, he will pay for more stuff proportionately, so I won't be sat skint while he has got money as some people have suggested.

BTW I go to work as well, am not just sat on my arse "claiming benefits" (not that I'd be sat on my arse with 3 small dc but you get what I mean)

OP posts:
PtolemysNeedle · 24/03/2015 08:38

ffs the clue is in the name working tax credit you are credited back some of your tax as you have low income and of course everyone who receives tax credits spends it on flat screen tv's and holidays!

Err, no, there really is no clue in the name there.

Firstly OP hasn't said whether it's working or child tax credits she's receiving, and either way, she may well not be paying any tax. You don't have to pay tax to get a benefit that was cleverly named a 'tax credit' by a labour government that wanted to make as many people as possible reliant on them. Tax credits do not come out of money you have already paid in tax. If that were the case, how do you think so many people that choose to be SAHPs get them?

EhricLovesTheBhrothers · 24/03/2015 08:44

Yes but fucking your maths is off. They don't reduce your tax credits by £2700 at all so yes, while they use that £700 in the calculation they don't assume you have it in your pocket as tax credits are fully aware that people pay tax. They use pre tax income to calculate your award, I'm not sure why this fact is making you so annoyed as it happens than this extra part of your income is a bonus.

ArcheryAnnie · 24/03/2015 08:49

I think one of the things that is going on here is an unequal distribution of family money, if you are taking the hit because he is earning more. If you have kids, then you should have a household income (as the tax system recognises) rather than two separate pots.

Arsenic · 24/03/2015 08:59

That's her own fault for having a DH who treats her like crap

Shock
Moreshabbythanchic · 24/03/2015 09:03

If the bonus money is being used to pay off debts and a holiday then surely that is benefitting the whole family.

ssd · 24/03/2015 09:03

op, is this the first time he's had a bonus then?

JennyOnTheBlocks · 24/03/2015 09:08

i get where you're coming from, OP

your DH gets a bonus, but because you both earn lower wages, you won't see any financial benefit from it.

if you were higher earners, you would

Arsenic · 24/03/2015 09:10

OP

Do you mean that there is £700 tax to pay on the £2700 bonus?

And then your TC award for the year will be reduced by -what- £1100? Because of a roughly 40p in the £ withdrawal rate on the gross bonus?

Is that it?

Because if so, that's true of all wages and tax credits. Tax Credits are calculated on gross earnings but you have to pay tax on the earnings.

This isn't unique to bonuses.

And you'll still be £900ish better off than if you hadn't got the bonus.

Have I got that right?

AwakeCantSleep · 24/03/2015 09:14

Oh but they do benefit from it. By £1300!

I think OP is confused by the fact that tax credits are calculated on pre tax income which is just the way they are calculated. If they were calculated on post tax income the amount people get awarded in tax credits would be lower.