Working Tax Credits: A Black Art??? [Some Helpful Figures]

[Seraphim]

I found entitledto gave me incorrect data

 

[Maffie]

I've found this thread really interesting. I'm most worried as OH pays maintenance for his other children but I dont think this is accounted for when they work out our wtc/ctc so we are pretty stuffed.

 

[LuckySalem]

Sorry but just want to check something feel free to tell me if you've explained it and I've lost it somewhere! lol

Based on the figures you've given it means that my OH actually dropping his wage earns us more than he is earning now?

OH earns £1460 (before tax) every 4 weeks and I get given £180 every 4 weeks.
It seems that if OH drops his earnings down to £1200 (before tax) I'll then get £213 every 4 weeks.

And instead of my CTC staying the same when LO arrives (which I wasn't actually aware that it would) it should shoot up £431 every 4 weeks. Bringing our (before tax) figure upto £1600 every 4 weeks?!

Surely this is screwed up?!

 

[Seraphim]

Hi, I've just caught your post and in no fit state to juggle the numbers but I know when I looked at our own figures there was a really strong argument for me taking the year after maternity leave on a part time basis (to spend the remaining time doing my professional diploma and go back to a much better salary). We've got alot of business costs which keep our income low, so yeah I'd be almost the same financially if I don't go back full time. Although I know in my case the available TC is higher because I have a disability.

Normally I wouldn't pay any attention to it - but it's different when you're thinking of being away from your baby. I guess that's why it's set up that way.

In most cases working less holds you back in other ways, or the progressive job just isnt available on those hours. Which is why if I were to step out in that second year it would need to be to be with little one AND do the diploma to increase my salary when i return.

But your example (and mine) is why I wrote this in the first place... I thought it's amazing news for anybody who's close to that cut off line. But that's the thing, they have to draw the line somewhere, and you only get this kind of 'bonus' if you're close to it... and I guess someone will always be in that position wherever they make the cut off.

It really is the kind of thing which is worth sitting down and getting your head around, writing out all your figures for.

Can you believe I didn't know TC existed!! I'm so grateful, it's the only way I can take proper maternity leave to be with LO.

 

[LuckySalem]

I've not worked for the past 2 years anyway so not working isn't really gonna make much difference to me and OH doesn't want to get any higher in his particular job. However, what you've said just gave me a great idea for him - he's always said he wanted to go back to college so maybe instead of dropping his wage he could ask to drop a day (which would make him able to go to college and still bring his money down enough)

 

[Seraphim]

Good news

I did my science degree with the OU and it was fantasic. I got through 2/3 a B.Eng before I was able to go on placement and realised I wasn't really able to apply it in the workplace :/ But I can still use the study I did towards something else.

Again, I was very grateful for alot of help to complete my study. And it paid off.

I do have a personal struggle (very personal and no judgement on others) with these kinds of juggles where you essentially 'try/work less' - but I guess I appease myself with saying if it's for the greater good you can use the time/energy wisely looking after your children or improving yourself to do bigger things, you repay it in the end.

Anyway - enough of my twaddle

 

[Seraphim]

*bump*

I noticed some people asking about this again as I popped in to do my updated sums and budget

 

[Heavenx]

Thanks for this thread, interesting read although I do remain confused when it comes to CTC etc. We applied, recieved CTC and WTC only to find out a couple of months later that they'd made an error and we owed them, that was a number of months ago and I haven't heard anymore from them since, which I'm surprised because I thought they would have reached a figure as to how much we're supposed to repay them each month. *sigh* Anyway my situation will be changing when I have baby No2 as I won't be going back to work this time, we're intending on struggling through financially. It will be interesting to find out what (if anything) we'll be entitled to later in the year.

All the best to everyone trying to figure out your entitlements, I hope everyone gets what they deserve

 

[doddy0402]

ctc are a nightmare!!! I updated them every year as requested with all information they ever asked for. over the 3 and a half years since my son was born our joint income has gone up approx 7000 from 17000ish to 24000 ish so we are still not on huge salaries. but in july 2008 they let me know that they had over paid me for the 2 years before and they were going to take it back by stopping all future payments from then through to dec 2009!!! so 26 months of payments from 05/2006-07/2008 was going to take 17 months to pay back! and low and behold in september 09 received another letter to say that I will now be paying it back until april 2010!!!! and no one can give me a reason for why!.
I think I will get something when this bubs is born, but I am not spending a penny unless I absolutely have to, so when they tell me I have to pay it all back again, I'll be prepared!!! rant over! sorry!xxx

 

[Linzi]

Thanks for this thread but I am waaaaay confused & slightly worried that the numbers I got on entitledto are incorrect. Ive applied to work part time at work from march because out tax credits are going to drop & we wont be able to afford to live. The only way we could is if I worked part time so our income dropped & CTC would go up (in theory).

Im at a total loss about what to do & so confused x

 

[Seraphim]

It is a bit crazy.
I can try and help?

I've just been looking again to try and figure out at what number of hours/pay I'd be better off going back to work early.

 

[Ley]

Thanks for this thread, I am wondering how it will affect me though and wondering if someone could give me some advice.
Both OH and I are unemployed with 2 children and in reciept of CTC. However on Monday I have a job interview and am wondering how money will be affected if I do get the job.
The issue I have is that,k the position I am applying for is not contracted, it's basicly shifts as and when they are available.
Obviously I then will have no idea how much money I will be earning each month as it will vary and won't be able to confirm an exact amount of hours.
Anyone have any idea what to do in this situation?

 

[Seraphim]

Hubby is a musician so we've had to estimate his hours etc
They accept estimates, and if theyve paid you too little they make the adjustment in april after you get your P60 (which totals your earnings and tax for the year)

 

[Ley]

ok thanks for that!

 

[Arcanegirl]

Right looking at the first page, i have a question.
Mine and OH's joint income comes to 17/18k so a bit over the first threshold. Would we benefit from increased tax credits if one of us dropped some work hours to get our income to under the threshold?

 

[Seraphim]

Right looking at the first page, i have a question.
Mine and OH's joint income comes to 17/18k so a bit over the first threshold. Would we benefit from increased tax credits if one of us dropped some work hours to get our income to under the threshold?

It's hard to quickly say 'yes definitely' without triple checking, but essentially yes, if you're *just* the other side. There has to be a line drawn somewhere, which some people will be close to and be in a position where they could juggle it.

 

[Linzi]

It is a bit crazy.
I can try and help?

I've just been looking again to try and figure out at what number of hours/pay I'd be better off going back to work early.

We earn £30k & pay 860 pcm on full time childcare. We earn £15k each

If I drop a day our joint income will go down to 27k (30 hrs), and if I drop 2 (which is preferrable but I dont think theyre going to let me) It will go down to 24k (22.5hrs).

I havent been granted part time yet my application is in though just waiting for a decision.

No idea where to begin they wont even give me an estimate on the phone!

x

 

[Arcanegirl]

Right looking at the first page, i have a question.
Mine and OH's joint income comes to 17/18k so a bit over the first threshold. Would we benefit from increased tax credits if one of us dropped some work hours to get our income to under the threshold?

It's hard to quickly say 'yes definitely' without triple checking, but essentially yes, if you're *just* the other side. There has to be a line drawn somewhere, which some people will be close to and be in a position where they could juggle it.

Had a look into it, we actually earn nearer 19k between us, for what we would get in tax credits by dropping down to 16k would give us a loss so its not worth it for us

 

[Seraphim]

It is a bit crazy.
I can try and help?

I've just been looking again to try and figure out at what number of hours/pay I'd be better off going back to work early.

We earn £30k & pay 860 pcm on full time childcare. We earn £15k each

If I drop a day our joint income will go down to 27k (30 hrs), and if I drop 2 (which is preferrable but I dont think theyre going to let me) It will go down to 24k (22.5hrs).

I havent been granted part time yet my application is in though just waiting for a decision.

No idea where to begin they wont even give me an estimate on the phone!

x

Did you follow the link in the OP?
It lays it out in there... your 'award' will vary depending on disabilities, whether one or both of you work 30+ hours etc... then for every pound you earn over the threshold they deduct 39p (so about 40% of the chunk of earnings over the threshold)

 

[Linzi]

I did but I didn't understand it so confusing! x