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Tax credits help....

5 replies

sarahlou01243580 · 04/04/2016 08:31

I am so very confused and please ignore my apparent ignorance but I am about to become a single parent to a 5 yr old and twins of 17 months. Things are very amicable but I am concerned how I will cope financially. I am about to apply for tax credits. Up until my April pay I and my husband received childcare vouchers through our employer but I understand you cannot claim both so have reduced them right down to £20 per month each from April pay packet. I will take this figure into account when completing my childcare costs. My question is, as tax credits are based on the previous year's income is it also based on the previous year's childcare or based on my current situation? I don't want to claim for something and then be told ive done it wrong and be in a situation where I owe a lot of money. I will be claiming from 23/04/2016 when my husband moves out of the marital home and our childcare vouchers will reduce down to £20 wef from end of April. Does this even make sense or am I worrying about nothing? Any help very gratefully received. I work 22.5 hours a week and earn an ok salary but certainly not enough to support 3 children and a mortgage without help (husband will be paying maintenance at going rate).

OP posts:
VinceNoirLovesHowardMoon · 04/04/2016 08:37

Assuming you earn under the tax credit threshold then you will be better off ditching the childcare vouchers and claiming it all through tax credits. You give them this year's (16-17) projected income when you apply. They will ask for 15-16 too but it needs to be based on 16-17 or you won't get anything.

sarahlou01243580 · 04/04/2016 08:52

Thank you Vinc. Do you happen to know what the threshold is or know where I can access such information? The only reason I thought to stay enrolled in the scheme was if things changed (separation is a trial but likely to be permanent) and then we couldn't get back in the scheme in light of the system changing to tax free childcare (TFC) sometime soon? But maybe I'm just over analysing which is my usual way! :-D

OP posts:
sarahlou01243580 · 04/04/2016 08:53

*Vince......stupid iPad!

OP posts:
VinceNoirLovesHowardMoon · 04/04/2016 09:59

Google tax credit calculator, you can put your details in and get a rough figure. Remember to put in this year's income when it asks for 15-16 income otherwise it will use the wrong figures. Although don't do it til tomorrow as today is the last day of 15-16 and it will give you one day's figures!

sarahlou01243580 · 04/04/2016 14:08

Thank you, much appreciated

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