Fcasebook and working tax credits

[MajorProblem]

Please do not move to finance.


Can someone explain and shoot this down, show your working because I'm pissed off with seeing it every five minutes on my wall.



Yes I know I need new friends / delete Facebook etc.

[Jim the Sunderer]

There's a nice outdated image if you want to look a berk like me.

Edited by Jim the Sunderer on Tuesday 14th July 17:58

[bazza white]

"Today if he or she works 16 hours a week on the national minimum wage (about £104 a week), they get the maximum tax credit – in this case, about £140 a week.

From next April, according to my calculations, no employee will be entitled to the maximum rate.

So this worker, on the new national living wage (£115.20 for 16 hours) will see their tax credits cut to about £120 a week."


From
http://www.hartlepoolmail.co.uk/news/opinion/benef...



The tax credits also stop people working more as they just lose the credits, at least when it's all gone and we are at £9 hour they will be able earn more for working more.

[ApOrbital]

On your wall that banksy gets everywhere some great art work though.

[eltawater]

You don't suddenly lose all tax credits once you go over the threshold. There's a tapering effect based on the salary earned over the threshold which reduces the amount of tax credit you are eligible for.

So the whole "anyone who earns minimum wage becomes ineligible for any tax credits" is wrong.

[R1 Indy]

So what's the criteria for claiming these tax credit handouts?

As a M.D could I pay myself for 16 hours at minimum wage and then claim tax credits?

Or is it not that simple?

[MajorProblem]

It's not bad is it. 16hrs at min wage plus working tax credit comes out at about £15 per hour, add housing benefit, council tax relief etc etc and your getting on towards £25 an hour.

Can't beat those that don't work at all though.

[Leptons]

bazza white said:

"Today if he or she works 16 hours a week on the national minimum wage (about £104 a week), they get the maximum tax credit – in this case, about £140 a week.

Is that for real?

[007 VXR]

Boils my bloody !! Have full timers working for me that have less at then end of each week than the
ones that popped out a kid a 16 because they wanted a house

[austinsmirk]

My wife works for hmrc.

Every other person on tax credits amazingly is self employed doing min hours on min wage

It's such a bent corrupt system the whole thing needs scrapping.

[Andyjc86]

Isn't that the threshold to claim working tax credits? So more people will be entitled to it, or am I missing the point?

[Leptons]

007 VXR said:

Boils my bloody !! Have full timers working for me that have less at then end of each week than the
ones that popped out a kid a 16 because they wanted a house

+ Child benefit, Housing Benefit, CSA payments from the ex. When all's said and done they're probably taking home more than you as well.