My feed
Premium

Please
or
to access all these features

Politics

Tax Credits?

39 replies

Bluesunday · 12/05/2010 09:17

Does anyone know what the Con-Libs plan to do with regards to Tax Credits now? I know they have already agreed on some issues (no to the illegal immigrant amnesty etc), but when will they make an announcement about TC, will we have to wait until the next budget? I'm a little worried, did they say they wanted to abolish them or have I got that wrong? My family will go under without them.
Oh, by the way, if you don't need to claim Tax Credits I'm very happy for you, please don't burn me for not being so fortunate

OP posts:
vesela · 12/05/2010 09:28

Only stopping them for higher earners (that always was both parties' policy).

Plus the Lib Dems got support for raising the tax threshold to 10k, although it'll happen gradually - there'll be an increase in the threshold next year but not as far as 10k.

FairyMum · 12/05/2010 09:30

High earners don't get much in terms of tax credits though. What is there to stop?

Bluesunday · 12/05/2010 09:34

I'm not a high earner, so they really do make a difference to my income. Thanks for the info, Vesela

OP posts:
TheHeathenOfSuburbia · 12/05/2010 09:44

They're having an 'emergency budget' within 50 days, was it? So we'll find out more then.

But both parties were committed to cutting them for high earners (I think family income >50k)

vesela · 12/05/2010 09:45

FairyMum - a lot of admin costs for a start...

FairyMum · 12/05/2010 10:03

There is a difference between a family where both parents work and they need to pay for childcare and a family on 50K where one parent work and they don't pay for childcare. 50K is not a high income in London.

TheHeathenOfSuburbia · 12/05/2010 10:11

Although, fairymum, the actual amount you pay for childcare is factored into it, isn't it? So your 50k earner +SAHM probably don't get anything anyway?

FairyMum · 12/05/2010 10:19

Sorry, now I don't understand what you mean. I am not aware of qualifying for anything at the moment. And how do you mean it is factored in that you pay for childcare?

littleducks · 12/05/2010 10:31

50K is not a high income in London i think its high enough not to need benefits tbh

FairyMum · 12/05/2010 10:35

50K is not a high salary if you have to pay for childcare. 50K is a decent salary if you don't have to pay for childcare. Tax credits should be there to help people to go out to work IMO

TheHeathenOfSuburbia · 12/05/2010 10:36

Well, you declare your family income and how much you pay for childcare and they work out your tax credit amount from that.

So if you don't pay for childcare, you don't get the element of the tax credit designed to offset your childcare expenses?

I was just trying to say that the difference you mention is already allowed for in the system.

FairyMum · 12/05/2010 10:46

Not for high income earners. We don't qualify for any tax credits at all and our childcare bill (4 children) is around 2k+ per month.

I am not saying I need benefits. I am well off and don't need any help. What I am saying is what is there to stop? High earners already don't get anything. Also, you can be a fairly high earner and not qualify for anything/much and still be crippled with a high childcare bill. You don't want to end up in a situation where only low-earners can afford to work either.

electra · 12/05/2010 11:03

When tax credits were brought in it was widely advertised that 9/10 people would qualify for something.

patienceplease · 12/05/2010 11:23

But Fairymum presumeably you decided to have 4 children. Perhaps if you are now concerned about the cost of childcare for those 4 children you should have thought about that before having them?

foreverastudent · 12/05/2010 11:28

patience- you'd prefer her to have had 4 abortions then?

animula · 12/05/2010 11:29

patienceplease - have a .

TheHeathenOfSuburbia · 12/05/2010 11:30

Yeah, I do see your point fairymum, I think it's basically wait and see how they rejig it.

But given the country's finances, I think a lot of middle-class type people are going to be losing benefits - child benefit? Winter Fuel? Who knows...

FairyMum · 12/05/2010 11:31

patienceplease, I am not concerned about childcare for my 4 children. I have got enough money to pay for 10 children in childcare if I so wished.

The point I am trying to make about childcare is this:

It was earlier argued that lib/con was going to stop tax credits for high earner. What is a high earner? High earners like myself already get nothing. If a high earner is someone earning 50K combined and both work, then this is not a lot if you need to pay 1K a month per child for childcare.

And of course, if you say that it is the choice of parents to have children and should think of the cost of childcare before having them, then that is what I fear is exactly the Tory-argument.

patienceplease · 12/05/2010 11:34

But fairymum there are some people earning over 50k who are entitled to tax credits, and that is what the libs/cons say they will stop. I think it depends on the age of your children??

patienceplease · 12/05/2010 11:36

and forever no I wouldn't prefer that, just think it is somtetimes very easy for people to complain about their situation, when sometimes they could have prevented it in the first place.
Personally I would only plan to have children that I can afford. I am aware that planning is not always what happens.

FairyMum · 12/05/2010 11:50

I actually believe the threshold is already 50K and again my point is that is not a lot if this is a combined income and you have to pay for childcare.

See, I want people to be able to afford to have children without having to either give up work and be a SAHM or work crazy hours and never see your children. I think is the type of society Labour was working towards and managed to make big positive changes and this is where the Tories want to cut which I think is a disaster.

patienceplease · 12/05/2010 12:55

Hmm, just did a quick calculation online at workingfamilies site saying that we earned 60k with 4 kids, 1 under 1 (not actually true for me) and it said I would get £423 tax credits yearly.
so cut off is not 50k. Might be worth you checking your allowance fairymum.

FairyMum · 12/05/2010 14:00

This is the basic that everyone gets for having children and is not means tested at all. So this is what they want to remove?

Chil1234 · 12/05/2010 14:13

Child Tax Credits really only become meaningful if your net income.... your gross income minus what you pay in childcare.... gets below about £25k. If you're on £50k and pay out £12k in chid care you still get the bare minimum of about £500 a year. If you're on £30k and pay out £12k in child care then your CTC award is significantly higher.

The Tory manifesto said they'd lower the ceiling for claiming to £50k. The LD manifesto would take it to about £31k but they would make the first £10k of earning tax-free. Since they've agreed to the '£10k tax-free' part it's reasonable to assume they've gone with the full LD plan.

snowlady · 12/05/2010 14:20

I am wondering if the reason labour did surprisingly well was due to gordon going on about don't vote tuory or lib dem or you'll lose your tax credits.

The tories didn't answer his challenge and clarify their policies and the lib dems didn't emphasise enough that some people would lose tax credits but gain more through the basic tax threshold being raised.

Please create an account

To comment on this thread you need to create a Mumsnet account.