Forgive me if I am behind but has there been something in the news re CTC? Or is it still just the CB?

[madmissy]

Being brave starting a thread, as I am quite possibly well behind!

DH just mentioned something about the CTC being stopped for SAHM? Is that correct? I am aware about the changes of CB and we are lucky that (or unlucky depends what way you look at it!) that DH wages are no where near the cut off.

He just quickly rang from work and heard something on radio, couldn't talk as he's out delivering.

in advance

CTC will change/end in January for families that have a household income over a certain amount. It was announced in the emergency budget a few months ago. Not aware of new information.

Me either ok thanks! Think hes getting confused with the child benefit bit!?

at riven

Haha!
That was my first thought! Then I thought if I reply with a answer you would say the opposite!

I can't actually remember for sure was it £22k region? I could be very wrong there

in fact I am sure that I am very wrong!

will leave now!

45k is the answer I think

Changes to CTC for 2011 Rather than everyone guessing, here's a link to the full story.

I would think so, Riven. I would be very surprised if the Tory bastards did anything other than screw the working poor over, tbh. I expect that someone who understands what the change re the 'disregard' means in real terms will be along to explain shortly.

I would guess that if it is cutting off at 40k then everyone under that will lose some of their ctc proportionately to reflect the face that the cut off point has been lowered.

Riven, don't automatically assume the worst and spook everyone in the process - get the information first. :)

'Income disregard' covers how changes in income affect the payout. If someone earning £15,000 gets a pay rise, say, to £20,000 then the £5,000 extra they are getting is under the amount for the 'income disregard' (£25,000) and their tax credit payments stay the same until the next financial year when they are recalculated. So all it's saying is that, next year, if your income jumps by more than £10,000 you'll get your payment recalculated more quickly - and the following year if your income goes up by more than £5,000 ditto.

I don't think that's what the income disregard means...

The first threshold is the amount of income they ignore (think it's around £6400). Anything you earn above this is what reduces your entitlement to TC

The income disregard is the amount of extra income they ignore if it changes midyear. I think at the moment a SAHP can get a job and earn up to £25k (where and how they find that job I've no idea, but in theory....) and it doens't chnage the TC for that current year.

I think they're lowering the amount the income can go up by to £10k. If your family goes up by more than that they change the TC for that year

Hope that makes sense...

doesn't it also work the other way round? not to be depressing but most of us are probably more likely to be getting 10k falls in income, not rises. I understood that under the previous system your tax credits would increase accordingly but now they won't til the year after?

xposted with Chil :)

Damn...I'm just going to have sell the children. Two teenage girls going cheap....anyone?!

And everyone, no-one has mentioned 'abolishing CTC'. You have to be very careful on public message boards like these... someone vulnerable might take this thread at face value, think they're going to be penniless and do something terrible out of despair. Seriously. Get a few facts rather than spread rumours.

INCOME DISREGARD - Overview

Yep that's right. And for once in our life we're on the right side of the changes, having had baby and pay rise before they hit.

on the 'abolishing ctc' point (nothing been hinted at afaik) - does make me suspicious though that apparently for purposes of calculating cb entitlement there is no computer system capable of working out a family income. yet every year I phone up to input all that info onto a govt computer system. first thing I thought was 'there goes the ctc system then'