Child Tax Credits, income and household earnings
Discussion
Good evening peeps,
We became parents in February and have just started to look at how little the government is prepared to give us in order to pay the mortgage etc.
At the moment my wife plans to go back part time and this enables us to claim child tax credits for childcare and should mean we maintain the same income as we did before having a little person.
Now here is the kicker, my bro inlaw has just been offered a job in the same town as us and is looking at buying his first property. However he will be living with us until he does so, how does this effect our benefits? Do we have to declare his income even though he is not contributing in any way?
This is all rather alien to us as we have never claimed anything in our lives.
We became parents in February and have just started to look at how little the government is prepared to give us in order to pay the mortgage etc.
At the moment my wife plans to go back part time and this enables us to claim child tax credits for childcare and should mean we maintain the same income as we did before having a little person.
Now here is the kicker, my bro inlaw has just been offered a job in the same town as us and is looking at buying his first property. However he will be living with us until he does so, how does this effect our benefits? Do we have to declare his income even though he is not contributing in any way?
This is all rather alien to us as we have never claimed anything in our lives.
The £100,000+ PHers to which you refer probably did what you should have done: thought about things, planned ahead, worked out how to achieve things, before doing something that isn't part of the plan. Your plan seems to be shoot, aim , load.
It's not the Tory government that you expect to maintain the consequences of your actions, it's us, UK tax payers. Incidentally, if fewer earned less than £100,000 there would be less tax collected and therefore less to pay out to expectant people such as you.
BTW, I am not a member of the £100K Club. I am being paid a pension by the State.
R.
It's not the Tory government that you expect to maintain the consequences of your actions, it's us, UK tax payers. Incidentally, if fewer earned less than £100,000 there would be less tax collected and therefore less to pay out to expectant people such as you.
BTW, I am not a member of the £100K Club. I am being paid a pension by the State.
R.
Countdown said:
Daston said:
I'm not saying we can't afford it. I also know that all of PH members are on £100,000 a year plus have a coke and hooker fund to boot. All I am asking is if by offering our brother inlaw to stay will it effect the child tax credit?
No. He's not part of your "household".Trabi601 said:
One for the council thread.
f
king 'ell what a bunch of patronizing s you lot are lolSo just because you get income from benefits I now am on a council estate? So the rule should be I pay tax all my working life but can't claim what I am due. Hope you never lose your job and have to claim anything!
Jesus fecking christ its not like I am asking how to get disability allowance whilst working as a brick layer and night time bar staff.
Thank you for the at least one sensible answer the rest of you can enjoy looking down at us mere mortals from your ivory towers.
Why should you get handouts just because you've chosen to breed?
Why do you think it's some kind of entitlement?
If you can't afford to bring up offspring without relying on handouts (I'm entitled, innit?) from the government, then you can't afford to have children and shouldn't have them.
This is all part of a much bigger issue, though - employers place more importance on paying shareholder dividends than they do on paying their employees a proper living wage. Of course, this is encouraged by government tax credits, which are effectively subsidising dividend payments in many cases.
Why do you think it's some kind of entitlement?
If you can't afford to bring up offspring without relying on handouts (I'm entitled, innit?) from the government, then you can't afford to have children and shouldn't have them.
This is all part of a much bigger issue, though - employers place more importance on paying shareholder dividends than they do on paying their employees a proper living wage. Of course, this is encouraged by government tax credits, which are effectively subsidising dividend payments in many cases.
Trabi601 said:
Why should you get handouts just because you've chosen to breed?
Why do you think it's some kind of entitlement?
If you can't afford to bring up offspring without relying on handouts (I'm entitled, innit?) from the government, then you can't afford to have children and shouldn't have them.
This is all part of a much bigger issue, though - employers place more importance on paying shareholder dividends than they do on paying their employees a proper living wage. Of course, this is encouraged by government tax credits, which are effectively subsidising dividend payments in many cases.
hahah the fact is IT IS an entitlement, I voted for the current government they decided that people with families should get a helping hand, therefore we have applied. Not hard is it? Could we afford it without the help? Yes, does the extra money help us.....yes, so why shouldn't we? Why do you think it's some kind of entitlement?
If you can't afford to bring up offspring without relying on handouts (I'm entitled, innit?) from the government, then you can't afford to have children and shouldn't have them.
This is all part of a much bigger issue, though - employers place more importance on paying shareholder dividends than they do on paying their employees a proper living wage. Of course, this is encouraged by government tax credits, which are effectively subsidising dividend payments in many cases.
It wouldn't be so bad if child care wasn't so horrifically expensive. It almost works out better financially for my wife not to go back to work which just seem broken to me.
Although it is nice to see that PH members can still read
or at least skim the thread as good as your average daily mail reporter (if only Dianna were here).This is the Finance Forum. On here, I would hope that people, on the whole, stick to answering the queries raised by posters rather than launching into moral crusades as to whether a person should be following a particular course of action.
There's plenty of scope for that in other forums.
I will repeat my question - is the OP talking about Tax Credits, Child Benefits or both?
There's plenty of scope for that in other forums.
I will repeat my question - is the OP talking about Tax Credits, Child Benefits or both?
Eric Mc said:
This is the Finance Forum. On here, I would hope that people, on the whole, stick to answering the queries raised by posters rather than launching into moral crusades as to whether a person should be following a particular course of action.
I'd suggest that the OP shouldn't have complained about 'how little' the government was going to 'give' him!Got everyone's backs up from the start, that did.
Government details on claiming Child Tax Credit -
https://www.gov.uk/child-tax-credit/new-claim
The rules on tax credits have changed significantly since they were first introduced by Gordon Brown over a decade ago. My hunch is that you won't be eligible for any on the basis that you don't have enough children.
Child Benefit (which is DIFFERENT to Child Tax Credit) used to be available to MOTHERS irrespective of their or the father's income. That changed a few years ago. Now, if the income of the mother OR father (or any person - male of female - living in a "couple" relationship) exceeds £50,000, then the Child Benefit will be restricted. If the income exceeds £60,000, it is stopped altogether.
Note, the income test is not a combined or "household" income test. It's purely based on whether the income of either individual exceeds £50,000 or not.
This means that a couple each earning £40,000 can keep all the Child Benefit - even though the "household" income is £80,000..
If ONE individual's income exceeds £60,000, you lose ALL the Child Benefit.
Other individuals living in the house are ignored UNLESS they are paying rent in which case the rental income is added to the landlord's income when calculating whether their overall income exceeds the £50,000- £60,000 limits.
There are two options available regarding stopping the Child Benefit if teh income thresholds are exceeded. Option 1 is to notify the authorities that you are GOING to exceed the threshold and that you want the Child Benefit Payments stopped.
This is a dangerous tactic as your income in the year may, for whatever reason, turn out NOT to be as high as you expected - meaning that you could have kept receiving the Child Benefit. If that is the case, you will find that you cannot retrospectively apply for Child Benefit you have missed out on. It's gone for good.
The alternative is to take all the Child Benefit you are getting and, if, after the end of the tax year you discover that your income really DID exceed the limit, you apply to complete a Self Assessment tax return for the relevant tax year and pay the excess Child Benefit back to HMRC as a Self Assessment payment.
Although the latter course of action is a cumbersome, it is the only sure way of knowing whether you should or should not have had Child Benefit and keeping what you are entitled to.
God knows how this will be handled under Making Tax Digital.
https://www.gov.uk/child-tax-credit/new-claim
The rules on tax credits have changed significantly since they were first introduced by Gordon Brown over a decade ago. My hunch is that you won't be eligible for any on the basis that you don't have enough children.
Child Benefit (which is DIFFERENT to Child Tax Credit) used to be available to MOTHERS irrespective of their or the father's income. That changed a few years ago. Now, if the income of the mother OR father (or any person - male of female - living in a "couple" relationship) exceeds £50,000, then the Child Benefit will be restricted. If the income exceeds £60,000, it is stopped altogether.
Note, the income test is not a combined or "household" income test. It's purely based on whether the income of either individual exceeds £50,000 or not.
This means that a couple each earning £40,000 can keep all the Child Benefit - even though the "household" income is £80,000..
If ONE individual's income exceeds £60,000, you lose ALL the Child Benefit.
Other individuals living in the house are ignored UNLESS they are paying rent in which case the rental income is added to the landlord's income when calculating whether their overall income exceeds the £50,000- £60,000 limits.
There are two options available regarding stopping the Child Benefit if teh income thresholds are exceeded. Option 1 is to notify the authorities that you are GOING to exceed the threshold and that you want the Child Benefit Payments stopped.
This is a dangerous tactic as your income in the year may, for whatever reason, turn out NOT to be as high as you expected - meaning that you could have kept receiving the Child Benefit. If that is the case, you will find that you cannot retrospectively apply for Child Benefit you have missed out on. It's gone for good.
The alternative is to take all the Child Benefit you are getting and, if, after the end of the tax year you discover that your income really DID exceed the limit, you apply to complete a Self Assessment tax return for the relevant tax year and pay the excess Child Benefit back to HMRC as a Self Assessment payment.
Although the latter course of action is a cumbersome, it is the only sure way of knowing whether you should or should not have had Child Benefit and keeping what you are entitled to.
God knows how this will be handled under Making Tax Digital.
Trabi601 said:
Eric Mc said:
This is the Finance Forum. On here, I would hope that people, on the whole, stick to answering the queries raised by posters rather than launching into moral crusades as to whether a person should be following a particular course of action.
I'd suggest that the OP shouldn't have complained about 'how little' the government was going to 'give' him!Got everyone's backs up from the start, that did.
Keep the ranting to the ranty forums. This is supposed to be a practical advice forum.
Trabi601 said:
Why should you get handouts just because you've chosen to breed?
Why do you think it's some kind of entitlement?
If you can't afford to bring up offspring without relying on handouts (I'm entitled, innit?) from the government, then you can't afford to have children and shouldn't have them.
This is all part of a much bigger issue, though - employers place more importance on paying shareholder dividends than they do on paying their employees a proper living wage. Of course, this is encouraged by government tax credits, which are effectively subsidising dividend payments in many cases.
If the government offers tax breaks to certain individuals then why shouldn't they be taken?Why do you think it's some kind of entitlement?
If you can't afford to bring up offspring without relying on handouts (I'm entitled, innit?) from the government, then you can't afford to have children and shouldn't have them.
This is all part of a much bigger issue, though - employers place more importance on paying shareholder dividends than they do on paying their employees a proper living wage. Of course, this is encouraged by government tax credits, which are effectively subsidising dividend payments in many cases.
Eric Mc said:
Government details on claiming Child Tax Credit -
https://www.gov.uk/child-tax-credit/new-claim
The rules on tax credits have changed significantly since they were first introduced by Gordon Brown over a decade ago. My hunch is that you won't be eligible for any on the basis that you don't have enough children.
Child Benefit (which is DIFFERENT to Child Tax Credit) used to be available to MOTHERS irrespective of their or the father's income. That changed a few years ago. Now, if the income of the mother OR father (or any person - male of female - living in a "couple" relationship) exceeds £50,000, then the Child Benefit will be restricted. If the income exceeds £60,000, it is stopped altogether.
Note, the income test is not a combined or "household" income test. It's purely based on whether the income of either individual exceeds £50,000 or not.
This means that a couple each earning £40,000 can keep all the Child Benefit - even though the "household" income is £80,000..
If ONE individual's income exceeds £60,000, you lose ALL the Child Benefit.
Other individuals living in the house are ignored UNLESS they are paying rent in which case the rental income is added to the landlord's income when calculating whether their overall income exceeds the £50,000- £60,000 limits.
There are two options available regarding stopping the Child Benefit if teh income thresholds are exceeded. Option 1 is to notify the authorities that you are GOING to exceed the threshold and that you want the Child Benefit Payments stopped.
This is a dangerous tactic as your income in the year may, for whatever reason, turn out NOT to be as high as you expected - meaning that you could have kept receiving the Child Benefit. If that is the case, you will find that you cannot retrospectively apply for Child Benefit you have missed out on. It's gone for good.
The alternative is to take all the Child Benefit you are getting and, if, after the end of the tax year you discover that your income really DID exceed the limit, you apply to complete a Self Assessment tax return for the relevant tax year and pay the excess Child Benefit back to HMRC as a Self Assessment payment.
Although the latter course of action is a cumbersome, it is the only sure way of knowing whether you should or should not have had Child Benefit and keeping what you are entitled to.
God knows how this will be handled under Making Tax Digital.
This thing were you can have a couple both earning £49k so total income is £98k and still get child benefit vs a couple where one earns say £25k and the other £60k so total income is £85k but get nothing, I thought someone was pulling my leg when they told me this but no its true, how the hell can they get away with that ? In my situation we are entitled to nothing, which on the face of it might make people think you are rich but far from it if you live inside the M25, paying a mortgage, having child care cost £1590 a month, council tax £250 a month. Staff canteen is £6.50 for a burger and chips.. https://www.gov.uk/child-tax-credit/new-claim
The rules on tax credits have changed significantly since they were first introduced by Gordon Brown over a decade ago. My hunch is that you won't be eligible for any on the basis that you don't have enough children.
Child Benefit (which is DIFFERENT to Child Tax Credit) used to be available to MOTHERS irrespective of their or the father's income. That changed a few years ago. Now, if the income of the mother OR father (or any person - male of female - living in a "couple" relationship) exceeds £50,000, then the Child Benefit will be restricted. If the income exceeds £60,000, it is stopped altogether.
Note, the income test is not a combined or "household" income test. It's purely based on whether the income of either individual exceeds £50,000 or not.
This means that a couple each earning £40,000 can keep all the Child Benefit - even though the "household" income is £80,000..
If ONE individual's income exceeds £60,000, you lose ALL the Child Benefit.
Other individuals living in the house are ignored UNLESS they are paying rent in which case the rental income is added to the landlord's income when calculating whether their overall income exceeds the £50,000- £60,000 limits.
There are two options available regarding stopping the Child Benefit if teh income thresholds are exceeded. Option 1 is to notify the authorities that you are GOING to exceed the threshold and that you want the Child Benefit Payments stopped.
This is a dangerous tactic as your income in the year may, for whatever reason, turn out NOT to be as high as you expected - meaning that you could have kept receiving the Child Benefit. If that is the case, you will find that you cannot retrospectively apply for Child Benefit you have missed out on. It's gone for good.
The alternative is to take all the Child Benefit you are getting and, if, after the end of the tax year you discover that your income really DID exceed the limit, you apply to complete a Self Assessment tax return for the relevant tax year and pay the excess Child Benefit back to HMRC as a Self Assessment payment.
Although the latter course of action is a cumbersome, it is the only sure way of knowing whether you should or should not have had Child Benefit and keeping what you are entitled to.
God knows how this will be handled under Making Tax Digital.
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