Tax credits being stopped - confused

[Cloudminnow]

We had a letter today saying the tax credits will no longer be paid to joint incomes of £26K plus. Does this mean that joint household income can't exceed £26K, or does it mean neither partner can earn more than this? For example could each partner earn £25K and still receive it?

A joint income is very likely to be yours and your partners income combined, 50k between you would be a hell of a lot. HTH.

£26k will be the limit for total family income (although may be different depending on amount of children, disabilities and probably other things that I don't know/remember).

You may be confusing it with the plans for child benefit where currently two non higher rate tax payers could receive it whereas a family with just one higher rate tax payer would not (despite the first family earning more). Although no one knows when this will actually happen yet, apart from "in 2013"

Joint income for tax credits, couples with one child earning over this are now very likely to not qualify for help and around £32k cut off for two children.

I thought it'd had been said at the beginning of the last fiscal year that this would be happening at the beginning of this fiscal year.The rough figure I had in my muddled brain was around a £31k cut off for those with 2 children.

Presumably it'll also mean that the closer you are to the cut off the less you'd get - I'd imagine that anyone falling just below would get very little.

Does the limit go up with more children?

HMRC page on 'changes to tax credits'

The income limit for Child Tax Credit is going down
Child Tax Credit payments depend on your circumstances and income.

At the moment, you can usually get some Child Tax Credit, as long as your income is not over the limit of £41,300. From 6 April 2012, this limit will be lower for most people.

From 6 April 2012, the income limit for you will depend on your own situation. But as a very rough guide, you might not be able to get Child Tax Credit from 6 April 2012 if:
? you have one child, and your annual income is more than around £26,000
? you have two children, and your annual income is more than around £32,200

Tax Credits are always based on the household income. The above, they stress, is a rough guide and will change depending on individual circumstances

I got the same letter today, .
Can't imagine next year we are going to lose child benefit as well.All these means nearly 200! How am I going to keep our humble little life as usual?
90% clothes are from sale.Most food are from Aldi. 2 rusty cars running.The only little luxary is my children go to private music lesson which is expensive.Shall I cut it?!

I got that letter which said over £26000 but I have 2 children so should it not say £32200 are they trying to confuse some into not claiming Surely this government would not mislead us to try and save money

No-one is trying to confuse anyone. The information is widely available that £26k is the threshold and that there are exceptions for carers, people with disabilities, large families etc. If your circumstances haven't changed since last year you don't even need to make a new application, your old information will be assumed to be valid.

No one is trying to confuse anyone.It is very clear, education, working hard is not encouraged.

Very cynical Curiousmind. But if you're losing child benefit next year then it means at least one member of your household is earning enough to pay higher rate tax i.e.>£40k. So the education and hard work is paying off for your family. If you're living like a pauper on that amount it can only mean your outgoings are too high.

I am sure we don't have any unnecessary outgoings. Nobody smoke or even drink.No posh clothes, shoes, cars at all.The only expensive thing really cost me over £200 a month is my children's music lesson. We have large amount of mortgage to go every month as well.So, these £200 child tex credit and benefit means a lot to me.I am saving,trying to get a better piano, with further income cut, how could I ?

Maybe downsize and get shot of the 'large amount of mortgage'?..... move somewhere cheaper? If my income went down that's what I'd have to do.

To be honest, if we choose to have children we should be prepared to support them ourselves, not rely on any government to help us support them. We have two children (and a step child for whom maintenance is paid) and had to make a conscious decision not to have any more as we wouldn't be able to afford to maintain the standard of living we currently have if we did. Our standard of living is not "high" but we can afford a holiday each year etc. We have just gone over the threshold and so our tax credits will stop in April, and whilst it's a shame to lose it, I feel it is up to us to support our kids not someone else, especially when the country is in such a bad financial state.

We got the letter today as well and apparently will no longer receive tax credits, the cut in the threshold from 41000 to 26000 seems extreme. They should have graduated it and there should have been more publicity as it will make a pretty substantial difference to my monthly income. As a SAHM DHs income pays the mortgage and bills and I get the child benefit and tax credit to keep the kids in clothes/shoes/school trips etc etc.

I don't agree that we shouldn't get financial help from the government to support children, its one of the few small recognitions there are that parents make large sacrifices and work hard to bring up the next generation and this benefits society as a whole.

I don't agree that we shouldn't get financial help from the government to support children, its one of the few small recognitions there are that parents make large sacrifices and work hard to bring up the next generation and this benefits society as a whole.I second your opinion.
However, if the goverment didn't give anybody (exclude disabled people or similiar),then that's fair.
But the situation in Enland is not fair.
It took lots of degree, experience for my husband (He is in industry full of hard science but not money.)to get that title and that salary just above the threshold to lost child benifit .£200 means about 4000 pre-tax annual income which means my husband is earning no more than his junior colleague, or little difference.Considering how much responsibibliy he is taking, it doesn't worth it.
I know somebody who is leaning nothing, doing nothing,but entitled all sorts of benefit, shopping at Marks food hall regularly, pick up free school uniform, get free medicine, free school meal, free computerl.I have to budget for everything to ensure my children are educated(Yes, my children are going to privat music lesson, and I have a library.). If people like us are forced into think about downsize(By the way, we are living in a small 3-beds semi) then I don't know what to say but can smell danger!

Groan... Does your M&S-shopping friend have a flat-screen TV that she pays for out of her lavish benefits as well......? Just because your husband opted to go into a low-paying industry you really can't bleat that you're hard done by. .

I got the same letter.it was confusing as we have two children. No where on my letter did it say about two children and the 32k mark. We don't earn that so will be applying(do earn 26k) though.

Although we got no tax credits last year because they had overpaid us the year before, which w ok, we managed and will manage if they don't give them to us again. But the letter was misleading.

Does this apply to single parents too?

We got the same letter yesterday.

If we lose CB as well we'll be fucked.

I don't think tax credits were ever designed to buy pianos.

Arf at the £200 a month music lessons and saving for new piano! Such hardships to be endured!

@llaregub... the threshold is for gross household income. If you're a single parent earning over £30k you'll no longer qualify unless you have two or more children, someone is disabled or other exceptions. Check that HMRC page I linked earlier. The information is out there and, if in doubt, make the application anyway.

If you pay childcare through childcare vouchers that reduces your income as far as hmrc are concerned. So if you are near one of the thresholds its worth phoning tax credits to find out. All it says on direct.gov is 'around 26k' and 'around 32k'. I recieved the letter today and it has panicked me.
Its not something I was aware of. It's coming at the same time that my wages get reduced (doing less hours as cheaper than sending 2 kids to nursery full time) and increased nursery fees as DD2 starts 2 days a week. Also being a public sector worker on pay freeze and pension increase on the way I am f*ed off with this government. (BTW before anyone comments on massive public sector pay, etc I take home less than £800 pm. Partner works in a factory)