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

[FuckingTaxCredits]

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

ihategeorgeosborne
We had the same experience last year with a very good bonus.

I think that the situation with child tax credits and a bonus is more harsh as people need that money to live. People losing CB are already well above subsistance levels. At least with child benefit the amount you lose can be calculated through self assessment. If you are unpaid on tax credits you don't get given the money at a later date.

The whole system of supporting families needs a serious look at.

I am confused, because I can't see how the family is worse off. They are only worse off because they are spending the bonus on a holiday and debts.

Yes its frustrating he is losing some of his bonus. But the OP and her dh knew that when he was putting un the extra work to get the bonus, as its happened before.

Some of the bonus could go into the account where the tax credits go and the rest be spent. I am not trying to be an arse. I just don't get how they are worse off.

This is why the whole system needs to be simplified. It's just far too complicated. But if the tax credits are based on household income then the bonus has to be treated as household income. I don't understand how tax credits work.

But it should be much much clearer to people what they are entitled to instead of all this family A gets this and family B gets that. They should be moving towards a flat rate whatever people's circumstances. (Not including disability payments in this.) You don't get a higher wage because you live in a dearer house or more wages because you have six children instead of one.

The perception that you lose money if you earn above a certain threshold is damaging even if that perception is not true. We need a clearer system where people can see that hard work pays. Tax bottle necks like the child tax credit system, child benefit or even people earning above 100K losing their personal allowance hurt those on the cusp. We need to iron out these bumps where certain groups of people can be hit with a huge tax burden for doing well.

One question for those of you saying how awful the OP is or how grateful she should be would you swap places with them? If not maybe you should show a little more compassion for those working hard but still not getting a lot.

So in essence OP has totally misunderstood the maths involved and isnt worse offf at all, but actually better off? Rather a pointless thread then.

The perception that you lose money if you earn above a certain threshold is damaging even if that perception is not true.

Very good point.

I would abolish tax credits entirely. They made a nation of benefits claimants and have done no one any long term good.

I would abolish TC and make it illegal to pay less that cost of living

years ago, when you could go to the Job Centre and look at the actual jobs advertised on the boards, there would be notes on the bottom of the lower-paid ones reminding you that TCs would be available to top up the pay to something more substantial

bloody scandalous IMO

With you 100% Jenny. I am not bothered about benefits to private households - I am bothered about corporate benefits. This includes low wages subsidized by the taxpayer. Who reaps the rewards? Oh yes, Company owners and shareholders.

hell yeah, Georgina

meanwhile we're down here (the financial pecking order) fighting over the scraps we're being thrown, demonising benefits claimants for sending the country to hell in a hand-cart, calling the lower-paid out for daring to take a fucking holiday?

corporation bastards

oh shit, NC there ^^

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.

Hang on. Does that mean that if I pay enough of my salary and private income into a pension I could also claim tax credits that I'm not currently entitled to?

Because if that's right, then the system is completely bonkers!

Is the OP's suggestion that bonuses should not count towards tax credits? The bankers would love that - they historically have had relatively low base salaries and high bonuses (admittedly not low enough base salary to give entitlement to tax credits - but not doubt they would play around with it if the system is as OP suggests)

I'm glad it's not only me who wants to see the end of tax credits. People not wanting to work more hours because they'll actually lose money. What kind of a mad system is that. Please not Miliband and his cronies adding more mayem to this crazy system.

I would abolish TC and make it illegal to pay less that cost of living

Trouble with this is the cost of living is higher for families than it is single people.

Labour expanded tax credits up to some pretty high earners because they wanted everyone to feel kept at least in part by the state. It had a very bad impact. It also meant employers could keep wages low. Housing benefit has a similar impact for those in work too. We kind of ensure low pay and in some cases that only part time work pays through the system. Even the new one benefit has you losing quite a bit of every extra pound earned when benefits are withdrawn. We need much simpler systems.

The system is completely bonkers
Pretty well sums it up

My minor tax credits annoyance is they count dh's company car as a perk. He uses the car for his job, he couldn't do it without it. Just like a fork lift driver uses a fork lift or a lorry driver a lorry. We can't use it as a family car as its too small and anyway he uses it during the day and often has it with him away overnight. Yet it's as if he was getting its worth in money according to tax credits. We just suck it up and are grateful for what we do have.

What sort of impact would getting rid of tax credits and substantially raising the tax allowance level have (to £20 000 for eg)?

Would the money lost from tax revenue be cancelled out by costs saved from tax credit?

Would a further tax allowance for those with children (via personal tax code like it used to be) also be affordable?

(Genuine question - I think the current situation is ridiculous too).

Ffs I work full time, am not entitied to tax credits and have not been on holiday for 7 years! You can actually afford a holiday and are on tax credits? I thought it wasn't for luxuries??? Suck it up princess - I paid for your effing holiday and sacrificed my own....

I don't get tax credits either but I've been offered a holiday by the carers association. That was nice of them. I was surprised though

Auntie Dee you didn't pay for her holiday and sacrifice your own. God complex much?

I get it. My husband had 2k pay rise with new job - lovely BUT we lost much in tax credits because if it. We use our income jointly mine pays about half our childcare bill and tax credits the rest and we live on dh's wages which are modest. We struggle to break even each month and probably better off if I didn't work but that's life.

Labour expanded tax credits up to some pretty high earners because they wanted everyone to feel kept at least in part by the state. It had a very bad impact. It also meant employers could keep wages low.

Tax credits (or whatever it was called back in the day) was expanded to working families because of very low wages.