Tax credits - they want to give me £1000/month.....??!

[stirlingstar]

I was awarded minimal tax credits last year, as we were close ish to the income limit. We're self employed and expect a significant income drop this year (credit crunch & all that). So have just received my assessment letter, and they want to pay me nearly £1000 month.

This would be fantastic. But as this is (a) a lot of money and (b) more than I even paid in tax last year, I can't bring myself to believe it. I certainly don't want a massive pay-us-back bill at the end of the year.

Is there any where I can check the calculation?
Is it feasible that I'm actually entitled to £1k/month??

(I have three degrees and I can't understand the system...)

lou - I have no children under 1

DS3 is 2 now >

Lou - thanks so much for that link and explanation. Feel much more armed for a conversation with them now. I reckon I should get about £500/month.

Why on earth don't they tell you about that calc on the forms themselves, so you've got a chance to check it properly?? Or even to work out whether it's worth applying - I nearly didn't even apply this year.

Wow, FAQ, time flies! DD2 turned 2 yesterday

stirlingstar, I suppose they don't expect people to be able or inclined to do the maths. What I always do is work out accurately what I expect DH to earn, then add about £1000-£2000 & declare that. We then end up being owed money by HMRC, which gets paid as a lump sum when we renew. I always check my award manually.

I remember returning to work after mat leave and getting an increase in ctc. the lady said that it wasn't being paid while i was at home as the non working party is expected to be looking after the kids. the childcare element was only taken into account when i returned to work part time. There was a slight reduction in one part of the letter but we now had some portion of the childcare element paid for. the next year, we got hit with an overpayment on renewal though.

LOU. Just used your formulae to work out if we are on the correct money. According to that I should be getting £222. a week. We get £39. a month

I haven't done the maths right I don't think

Stirling could they have includeda childcare element that you 'shouldn't' be getting because of not working? IYSWIM

shiny You'd need to be on an annual wage of around £15000 with three children, one of which severely disabled to get that sort of figure, unless it includes a childcare element.

It my opinion tax credits stink. You can get the same measly amount. £10 ish per week whether you earn approx £30,000 or £75,000. I am a sahm with 2 children and I just cannot afford to work as we would not get any help with childcare.
This amout would be the same however many children we have too.