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Original poster

How can I find out what tax credits we will receive next year? Ant advice welcomed!

98 replies

ssd · 14/09/2015 09:17

I know we will receive less, but I need to find out how much less. Is there an online calculator somewhere that will show me what we'll get as from when the changes to the threshold comes in?

Also ds turns 18 in May and we'll stop getting his child benefit from round about then, I'm not sure exactly when. So when this stops, and we only claim for ds2, do we get £20 a week or £13, like we are getting for ds2 just now?

If anyone could help it would be great, I'd scoured the internet and not found any answers and dont want to phone tax credits as I find them hopeless unhelpful.

OP posts:
Original poster
ssd · 14/09/2015 09:18

title meant to say any advice welcomed, not ant!! Blush

OP posts:
Babyroobs · 14/09/2015 10:46

Sorry I can't answer all your queries, but will tell you what I know. The child benefit for your child turning 18 should carry on until the end of August I think and yes you will get the higher rate for your younger child from then.
I'm not sure myself how to work out what tax credits you will get or how much they will fall. The thresholds are falling. For one child if you do not pay childcare and the child is not disabled, the cut off I think will be around £20.5k from next April ( it is currently £26k) so if you earn more than that you won't get any. I think the tax creidts will also continue for your secnd child until they leave full time education / sixth form. I'm not sure online calculaters exist yet for the new rates. If you go onto the Money saving Expert website and look in their forums section in the benefits/ tax credits section there are some threads with worried people asking about reductions. There is a really helpful expert who has been working out what amounts people may get next year. that may be worth a try perhaps?

Original poster
ssd · 14/09/2015 22:31

thanks for answering, I had a look at the money savings site but didnt really get any answers, just more worried than ever!

its not fair there isnt more info out there, its going to be a massive adjustment for thousands of people and it seems to be coming out of nowhere..

OP posts:
lougle · 14/09/2015 22:59

The tax credit threshold (the amount you can earn before deductions) will drop to £3850 from £6420. Additionally, the taper (the amount deducted from income) will rise from 41% to 48%. That means that anyone who has income over £6420 (the current threshold) will lose at least £1233.60 purely from the change in threshold and taper. After that, each £1 you earn will lose an extra 7p.

So, giving an example of £10k earning:

Today: 10000-6420=3580
3580x0.41=1467.80

Earning £10k reduces tax credit by £1467.80

Next year: 10000-3850= 6150
6150x0.48=2952

Earning £10k reduces tax credits by £2952

Overall loss for a £10k household: £1484.80

AndNowItsSeven · 14/09/2015 23:41

If it is child tax credits you will receive the same , it's only working tax that is being reduced.

KatharineClifton · 14/09/2015 23:50

Fairly sure the CTC will be reducing as well - apparently it's worked out on the WTC thresholds. I don't understand it at all though and it's stressful not knowing quite how much less I will have come April!

KatharineClifton · 14/09/2015 23:53

Minister confirms further cut in child tax credit

Original poster
ssd · 15/09/2015 09:34

good grief!

going by lougle's calculations above (thanks!), we are set to lose £50 a week!!!

we're skint as it is, dh's job is on the line and my work is slashing hours

I don't know what to do.

OP posts:
lougle · 15/09/2015 10:07

It's not just working tax that is being reduced. Working tax will be reduced first because there's a strict order for the deductions:
Working tax credits
Childcare tax credits
Child tax credit individual elements
Child tax credit family element.

So if your entitlement was only to working tax credit and was less than £1233 per year (£23 per week) then it might seem like only WTC was cut.

If you give me a breakdown of your income, whether you work 30+ hrs, no. Children, etc., I'm happy to calculate it.

I can write out the calculation steps if you'd prefer, but I'll wait for you to say you want it because it's quite long!

lougle · 15/09/2015 10:17

That sounds about right, ssd. I think we came out at about the same (£15k household, 30+ hrs, with 3 kids, one severely disabled).

Babyroobs · 15/09/2015 15:22

Yes I think a lot of people will be shocked by how much they will lose. Many people I have spoken to don't even seem to know thatthey will be losing money from April. At least if you know about it you can prepare to some extent.

KatharineClifton · 15/09/2015 17:17

There seems to be a fair bit of media coverage today because the vote is on later in the HoC.

tax credit cuts amount to penalising people for having a job, Jeremy Corbyn says [[http://www.independent.co.uk/news/uk/home-news/tax-credit-cuts-to-cost-britains-five-million-poorest-children-750-each-a-year-10490391.html]]

The rise in the NMW won't make any difference to me as it's just a 10p raise per hour as things stand.

KatharineClifton · 15/09/2015 17:21

I'll try that again!

Tories' tax credit cuts amount to penalising people for having a job, Jeremy Corbyn says

PurpleHairAndPearls · 15/09/2015 17:29

lougle can I ask please, do you know what will happen to the premium for children in receipt of DLA? I can't seem to find any info on this. I'm so sick and fed up of worrying.

AndNowItsSeven · 15/09/2015 17:39

As long as your income is still within the child tax credit threshold you will still receive the disabled child element.

Babyroobs · 15/09/2015 19:04

But I suppose as the child tax credits thresholds will be falling from April, it will exclude more families from tax credits altogether, therefore they will lose the disabled child element also?

AndNowItsSeven · 15/09/2015 19:55

No babyroots you must be mistaken, Osborne promised benefits for disabled people would not be cut.
Back in the real world sadly you a right.

AndNowItsSeven · 15/09/2015 19:56

Sorry roobs Smile

Babyroobs · 15/09/2015 20:43

It's awful, especially as you consider the threshold for one child ( without childcare costs) will be falling as low as £20.5K. Therefore if you have one child who is disabled and a household income more than this you will get no tax credits. Hard to believe how much they are being cut.

lougle · 15/09/2015 23:09

They're affected just like everything else. Sorry.

PurpleHairAndPearls · 16/09/2015 12:58

It sickens me. I'm too fed up to start ranting

Original poster
ssd · 19/09/2015 14:28

the cuts terrify me

OP posts:
KatharineClifton · 19/09/2015 19:03

Heard on Money Box that there is a calculator of sorts on Unison, but it's not very sophisticated so I still have no idea.

Georgethesecond · 19/09/2015 19:09

Lougle if you could do mine I'd be massively grateful.

Single parent, income £13k for 18 hrs pw no childcare costs, 2 children, no disabilities.

Babyroobs · 19/09/2015 19:29

George: If you get housing benefit, your housing benefit will go up to make up some of the drop.