message for boredveryverybored

[surprisenumber3]

Hi - really sorry to ask for you personally but I saw you were a tax credit officer

I have 2 children at the moment and one received DLA middle rate, so we get extra on the CTC for him. We're not entitled to WTC.

Now, when I worked, our joint incomes were over £32000 and we didn't get any extra CTC for DS1's disability. However, when I left work and income went under £30000, we started getting a bit extra (not the full disability element though).

Now, I am expecting a baby in April and on looking at the calculators it seems we will get a substantial amount more (not just the baby under one year element, but extra because of the DLA as well - well when I calculated it without this it was a lot lower).

So, basically if you have a child under one are you allowed to earn more before the deductions come off?

Sorry if this is really complicated but I am hoping you (or anyone else can help me understand!).

Thanks xx

I am not a tax credit officer - but essentially yes AFAIK.

This is my understanding of how the system works:

They add up al the benefits and elements you are entitled to (which will be more because of the third child).

Then they work out how much they are going to reduce it by due to income (which will be teh same cos income hasn't changed; well actually this may go down if you don't get full pay throughtout mat leave; and you also don't discolse the first £100 per week for maternity leave).

So the initial award will go up. The deductions stay the same (or even go down) so you will get more.

thanks RI - was just wondering why we get more for the disability element too when the baby is born...not that I'm complaining!

Because they give you a list of "elements"

Then they subtract the income deductions off the list in a dfined order. As you start with a greater figure, because family element is "higher" up the list (and is now a higher value) than disability element there will be more residual credit left by the time you get to teh disability element

i'm sorry it is really hard to explain. Basically it is to do with the way they subtract the deductions due to income.

ohhhh - I think I'm getting it!

thank you loads!

Basically before

Element 1 £3000
Element 2 £2000
Element 3 £1000
Disability element £1500

Deductions due to income need to total £6000

So sums look something like this:

Element 1 £3000 - £2500 = £500
Element 2 £2000 - £1500 = £500
Element 3 £1000 - £1000 = £0
Disability element £1500 - £1000 = £500

you recieve £1500 ( the important bit)
After April

Element 1 £3000
Element 2 £2000
Element 3 £2000 (increased because of baby element)
Disability element £1500

Deductions due to income still need to total £6000

So sums look something like this:

Element 1 £3000 - £2500 = £500
Element 2 £2000 - £1500 = £500
Element 3 £2000 - £2000 = £0
Disability element £1500 - £0 = £1500

You recieve £2500 (the important bit) and disability appears to have increased cos it is bottom of the list.

Sorry crude example totally ficticious figures but hopefully it might make a bit of sense.

wow brill, thankyou, you totally know your stuff.

I really do get it now

No I think I know my stuff...I hope bvvb will confirm.

I went into it all in great detail when I had a major issue with my calculations.