Tax Credits And Universal Credit

[Dave20]

I wonder if anyone can assist. I’ve looked into the benefits calculator to see if there’s any benefits we can claim.
Originally the gov website said we may be eligible for child tax credits, but I’m aware new claimants can’t claim tax credits. The newer systems of universal credit just said we’d be entitled to child benefit, which most people get.
Our situation is;
I’m 39 and work 39 hours a week. I earn £432 a week before tax. Annual salary of £22,500.
DW is 35 and works 22 hours a week. She earns just under £800 every 4 weeks.
We have two children, a 6 year old and an 8 month year old.
From September we are sending our 6 year old to after school childcare, £30 per week.
We also own our own home.
Anyone know if we can actually claim anything? Our joint income is around £32 k per year, mine and DW salaries combined.
It’s a bit of a minefield.
Thanks

You're just on the cusp of eligibility. You might just be eligible for about £3 per week now, but in September when the £20 uplift ends, you won't be.

Ok so basically we’re not entitled to anything?!

Basically, yes. Your income is too high.

If you were renting you might have been entitled to a little bit more, but it would only offset any increased outgoings in the form of rent, so you wouldn't be better off.

Go on the universal credit essentials website. They show you how to work your award out correctly. We never got anything on the old system. We get quite a bit of help on uc

Salad, could you tell me the exact website please?

Have a look at www.entitledto.co.uk . It will ask for some details but should tell you exactly what you can claim.

You need to be considering how you can increase your income either by finding better paid jobs and/or cutting expenditure.

Do you rent @Saladd0dger? People who rent get a better deal with Universal Credit, in that their whole eligible rent is taken into account, although they get a lower work allowance. People who own, like the OP, get a flat rate of work allowance, no matter how big their mortgage.

What is your net pay each ? Based on your gross pay figures your income is too high for any help but Uc is based on your net earnings in your monthly assessment period.

It's unlikely you will get anything. I earn 20k as a single parent and though I no longer claim I was only entitled to £40/month

You would get standard couples element £596.58 ( reducing to £509.91 after September).
2 x child elments one higher and one lower =£519.58.
Child care costs ( averaged ) = £110.50.
Total UC = £1226.66 per month.

You then take any net wages reported by HMRC in your monthly assessment period, take away £515 ( work allowance ) then multiply by 0.63. This gives you the deduction form your total UC.
As you are paid weekly and your partner four weekly, the paydays that fall in your monthly assessment period will vary each month, there will be one month a year where your partner would have 2 paydays fall in the monthly assessment period.

"You would get standard couples element £596.58 ( reducing to £509.91 after September).
2 x child elments one higher and one lower =£519.58.
Child care costs ( averaged ) = £110.50.
Total UC = £1226.66 per month."

Would it not be only 85% of the childcare costs though?

@Lougle

"You would get standard couples element £596.58 ( reducing to £509.91 after September). 2 x child elments one higher and one lower =£519.58. Child care costs ( averaged ) = £110.50. Total UC = £1226.66 per month."

Would it not be only 85% of the childcare costs though?

Yes op said £30 a week childcare, so I averaged it. 30 x52 divided by 12 then x0.85 = £110.50. Obviously actual childcare costs will be different if paid weekly but without exact figures i have averaged it.

@Babyroobs Ah, I was working on 39 weeks per year, because OP said it was an after school club.

[quote Lougle]@Babyroobs Ah, I was working on 39 weeks per year, because OP said it was an after school club.[/quote]
Of course - my mistake. I think still very unlikely there's any eligibility.

Yes, I ran the elements through and thought they could get £3 per month at a push. But after September even that would go.

@Terminallysleepdeprived

It's unlikely you will get anything. I earn 20k as a single parent and though I no longer claim I was only entitled to £40/month

Really? I was receiving £98 a month on 28k.

As previously mentioned though it depends on so many individual factors. Just because two people get the same wage it doesn't mean they will get the same Uc because factors like children's disability/ inability to work/ rent costs and local housing allowance rates, caring responsibilities will all give extra elements on a Uc claim.

@Babyroobs

As previously mentioned though it depends on so many individual factors. Just because two people get the same wage it doesn't mean they will get the same Uc because factors like children's disability/ inability to work/ rent costs and local housing allowance rates, caring responsibilities will all give extra elements on a Uc claim.

And pension contributions make a difference to net pay, so increase UC entitlement.

Are there no childcare costs for the youngest, OP?

Hi everyone , been off the site for a bit.
I’m looking again at our situation.

With regard to childcare costs, were looking at sending our 6 year old to after school club which will cost £30 per week.

We are also thinking of sending our 9 month old to nursery for £25 per week or £50 per week, if we are eligible for UC.
So our total childcare care costs would potentially be £330 per month, but we couldn’t afford to pay this all unless we have UC.

Bump

If you both pay a little bit more into your workplace pension and reduce the amount you earn net, you might be eligible?

Put figures in for that. It could be worth it plus you are then saving for your future.

I pay 22 per week into my work pension and DW pays the minimum requirement.
The Turn2us website says we may be entitled to £67 per week UC, or £47 per week after the £20 is taken away by the government soon.
Again it’s confusing.

You could join a childcare voucher scheme if the childcare is ofsted registered. That way the money for childcare comes out before tax and you’re not taxed on that amount. Not sure how much that would save you but worth doing.