BASTARDING tax credits

[debka]

So can anyone tell me why I am not entitled to any working tax credits despite working 36 hours a week? Minimum wage so not exactly raking it in either. DH self employed, 16hrs a week, £12,000 a year ish.

I think the household cap is £17,000 ish

:( I don't feel well off at all :(

I think the individual limit is £17000 and couple is £26000, might be wrong. We are entitled to some working tax credit whilst Im on mat leave and DP earning £16000 a year but if I were to return to full time work (earning less than your DH) we are not entitled to it as of next April/new tax year.

They calculate it by how much you've earned in the tax year and take in to account previous tax years. If you have any children at registered childcare you should be entitled to Child tax credits. I would give them a call to see where you stand.

Minimum wage is £6.19 per hour. So your wage is around £12,000 per year.

Your DH works 16 hours per week for £12,000 per year.

Total income: £24,000.

This table from HMRC shows that if your joint income was £17,000, you'd get £350 per year in Tax Credits. At £18,000, you get nothing at all.

This table shows the difference if you have children.

If you have one child, then at your combined income, you'd get around £750 per year in tax credits.

If you have two children, then at your combined income you'd get around £3470 per year in tax credits.

If you have three children, then at your combined income you'd get around £6195 per year in tax credits.

If you have children then you will be eligible for child tax credits on that income, however as previously stated cut-off for working tax credits is £17,000 so your household income is significantly more than that.

Thank you ever so much clever people

yes apparently we cant get working tax on a joint income of 18,107 a year with 4 children including 2 disabled. no idea how it works really but am kinda pissed.

That seems right, CherryMonster - you should get around £330 per week child tax credit but you won't qualify for working tax credit.

The reason is that while Child Tax Credit is variable depending on your family makeup, the rate for Working Tax Credit is fixed:

Basic element £1,920

Couple and lone parent element £1,970

30 hour element £790

Disabled worker element £2,855

Severe disability element £1,220

So unless you have a disability, the total Working Tax Credit award for a family with at least one parent working full-time is:

£1920+£1970+£790 = £4680

You're allowed to earn £6420 without penalty, then for every £1 you earn after that, 41p is deducted.

£4680/41 x 100 = £11414.63

Add on the amount you're allowed to earn without penalty:

£11414 + £6420 = £17834

If you have a joint income of £17835 or more, you won't get Working Tax Credit no matter how many children you may have.

aha. now you have explained it i understand, but the woman at the tax credits office didnt explain so well. thank you. means that the free school meals will stop, and my income support has stopped and housing benefit so we will probably be worse off than i was on my own :(

free school meals isn't available for people on working tax credit anyhow - it is only for people on child tax credit only or income support/JSA.

Housing benefit shouldn't have stopped unless your rent is low.

To give a comparison, we have 3 dc, one with a disability, and we get HB on an income of £13-14k.

In some areas ( like here in NI) some families on WTC do get free school dinners. There's a cutoff income limit though but i can't remember it.

Check your local website.

rent is only $00 a month. will get hb when we go private soon.

no, rent is £400