tax credits help please?
tax credits help please?
I claim child tax credit as I have 2 children. My partner works full-time and I am a stay at home mum.
I have been getting about ?4,000 for the last year, and have just renewed my claim for this year. The problem is, I have since discovered this new thing where anyone who earns over ?15,860 a year has 41% deducted from their claim from now onwards. I am now seriously worried about how this will affect how much I get for this year, compared to last year, as we really couldnt manage with much less than what we have been getting. My partners earnings were ?21,362 so we are hardly mega-rich! Does anyone know how this 41% deduction is affecting peoples claims? thanks
Answers:
Chosen Answer
Back to the drawing board: No, don?t worry, what I think you've heard is that the ?taper? went up from 39p in the ?1 to 41p in the ?1 this April, not 41% taken off your claim, so it will go down a little bit but not that much. That?s just how it?s worked out and the taper applies to every ?1 above the threshold income which is now ?16,190. The BBC website explains it and they give an example of a couple with two children earning ?25,000. It goes down a bit 2011 ? 2012, but goes up again the next year because of the rise in the child element and the taper not being changed. ?2,498.80 this year (2010-11) ?2,427.20 in 2011-12, taking account of the rise in each child element by ?150 and the increase in the reduction taper to 41% ?2,547.20 in 2012-13, taking account of the extra rise in each child element by ?60.
2011-06-03 13:14:57
Back to the drawing board: No, don?t worry, what I think you've heard is that the ?taper? went up from 39p in the ?1 to 41p in the ?1 this April, not 41% taken off your claim, so it will go down a little bit but not that much. That?s just how it?s worked out and the taper applies to every ?1 above the threshold income which is now ?16,190. The BBC website explains it and they give an example of a couple with two children earning ?25,000. It goes down a bit 2011 ? 2012, but goes up again the next year because of the rise in the child element and the taper not being changed. ?2,498.80 this year (2010-11) ?2,427.20 in 2011-12, taking account of the rise in each child element by ?150 and the increase in the reduction taper to 41% ?2,547.20 in 2012-13, taking account of the extra rise in each child element by ?60.
2011-06-03 13:14:57