Anyone know the cut...
 

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[Closed] Anyone know the cut off figure for family credit/working tax credit

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As above,have had cut in income, wondering if worth applying


 
Posted : 13/01/2013 7:35 pm
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£50k gross after pension contributions and childcare vouchers - tapered reduction until £60 when you lose the lot. You can continue to claim if you like but you lose it in tax and have to self assess.

Which is bullcrap.


 
Posted : 13/01/2013 7:38 pm
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http://www.hmrc.gov.uk/taxcreditsbudget/index.htm


 
Posted : 13/01/2013 7:41 pm
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Much lower than that for family credit / WTC. I think that £50k-£60k refers to child benefit which used to not be means tested.

It's a pretty complicated system with several variables, income, hours worked, age, partner, no. and ages of children.

Probably worth going to HMRC calculator here;
http://www.hmrc.gov.uk/taxcredits/payments-entitlement/entitlement/question-how-much.htm
and checking on your particular situation.

Not sure of the thresholds now (separate ones for WTC and family tax credit) but it used to be roughly above £25k and you get nowt and below that you might be able to get something with max amounts being paid out at around £7k. Between the 2 you'd lose something like 41p in the £1 which added to income tax and NI gives an effective tax rate of about 74p in the £1 which doesn't give a lot of incentive for folk to improve their position unless they can jump up to above around £25k.

Don't know why they couldn't just increase personal allowances and let people decide for themselves how much to work and how many kids to have etc, but that's a whole other discusion.


 
Posted : 13/01/2013 7:56 pm
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As above, it depends how many kids you have. IIRC, for 1 child it's about 27k for ctc, probably much less for wtc.


 
Posted : 13/01/2013 9:42 pm

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