Tax Credit Calculator For Next Year? (From this April)

LucyS

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Is there one out there? At the moment I rely on my tax credits quiet a bit and they are fairly high as Alfie was under 1 and also as I was on maternity leave (maternity allowance) my earnings were low.

This last year I have earnt £18,000 by April and Alfie is over 1. Will I receive any at all? I am a single mum.

I know it wont be much but any little will help boost my earnings. Thanks
 
You could just use entitled to and change the dates so that its like a year past?
 
I have done that but am worried it will do it as that year Alfie would have been under 1 so may over estimate? Its all so confusing!
 
You can always calculate it yourself?

Working tax credit is made up of basic (£1,920 from April 2010), lone parent element (£1,890 from April 2010), and 30 hr week element (£790 from April 2010), plus childcare costs (80% costs up to a max of £175 per week for one child).

This is then reduced for 39p for every £1 you earn over £6,420.

Therefore assuming you work full time with no childcare costs (as I can’t really guess) you would get £1,920 + £1,890 + £790 – ((£18,000 - £6,420) x 39%) = £84.

Child tax credit is made up of family (£545), baby (£545 if you have a child under 1), and per child (£2,300). It is reduced the same way as WTC.

Therefore you would get £545 + £2,300 – ((£18,000 - £6,420) x 39%) = £nil. However there is a minimum CTC for families with income under £50,000 of £545. Therefore you should get that.

So only £629 in total, but this will increase once you have your second child.

The tax credits for 2010/11 will be based on your earning for 2009/10, but you need to tell HMRC of any changes, ie: being back in work. However unless your income increases by over £25k, the income increase will be ignored for one year. Thus you should still get 2009/10 amounts for the next year.

Hope that is helpful! You can check the relevant current year rates and thresholds at:
https://www.hmrc.gov.uk/rates/taxcredits.htm
 
Good to know ours dropped by £100 once Liam hit 1 so itl be good to see what were entitled to the next year
 
well my earnings have gone up to £18000 this year from about £11000 last year

Thanks for explanation
 

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