child tax credit on 26k salary
Discussion
Hi,
I am wondering if i will lose my child tax credit from April 2012 if i am on 26k salary? I heared that anyone above 25k will not be getting any child tax credit from April 2012. At the moment i am getting around £200 per month and i have got two kids.
Also, i have a question regarding child benefits. As we all know that from April 2013 gov is planning to cut the child benefits for families where one person is earning over £42550. I am wondering if allowances are part of your salary?For an example If someone is earning 42k and also getting medical or a housing allowance of 2k then does it mean that his annual salary is 42k + 2k = 44k? and if CB law is passed then it means he won't be getting any CBs?
I am wondering if i will lose my child tax credit from April 2012 if i am on 26k salary? I heared that anyone above 25k will not be getting any child tax credit from April 2012. At the moment i am getting around £200 per month and i have got two kids.
Also, i have a question regarding child benefits. As we all know that from April 2013 gov is planning to cut the child benefits for families where one person is earning over £42550. I am wondering if allowances are part of your salary?For an example If someone is earning 42k and also getting medical or a housing allowance of 2k then does it mean that his annual salary is 42k + 2k = 44k? and if CB law is passed then it means he won't be getting any CBs?
SteveDyson said:
Hi,
I am wondering if i will lose my child tax credit from April 2012 if i am on 26k salary? I heared that anyone above 25k will not be getting any child tax credit from April 2012. At the moment i am getting around £200 per month and i have got two kids.
Also, i have a question regarding child benefits. As we all know that from April 2013 gov is planning to cut the child benefits for families where one person is earning over £42550. I am wondering if allowances are part of your salary?For an example If someone is earning 42k and also getting medical or a housing allowance of 2k then does it mean that his annual salary is 42k + 2k = 44k? and if CB law is passed then it means he won't be getting any CBs?
I believe you wouldnt qualify for child tax credit any longer but im not 100% so im sure someone will be along to confirm. As for your second question, any allowance/benefit isnt a salary as its not classed as earned income as far as im aware. A salary is your working income anything else i believe wouldn't be included in such calculations but again i could very well be wrong and someone will probably be along to correct me and confirm! I am wondering if i will lose my child tax credit from April 2012 if i am on 26k salary? I heared that anyone above 25k will not be getting any child tax credit from April 2012. At the moment i am getting around £200 per month and i have got two kids.
Also, i have a question regarding child benefits. As we all know that from April 2013 gov is planning to cut the child benefits for families where one person is earning over £42550. I am wondering if allowances are part of your salary?For an example If someone is earning 42k and also getting medical or a housing allowance of 2k then does it mean that his annual salary is 42k + 2k = 44k? and if CB law is passed then it means he won't be getting any CBs?
Tax Credits is made up of two components - child tax credit and working tax credit. The whole system baffles me - we can report a change to the relevant agency and receive several letters detailing different changes.
Child benefit is being withdrawn for any family where at least one parent is a higher rate tax payer. The key in this case is to avoid paying higher rate tax - increase your pension contributions or something. I'm hoping the government introduces some common sense to this legislation - at the moment I receive £3800 PA tax free in child benefit. Next year if I pass the £42.5K threshold I will need to pass £52K just to get back to where I started - and if the legislation is very badly worded then I will be worse off between these figures.
Child benefit is being withdrawn for any family where at least one parent is a higher rate tax payer. The key in this case is to avoid paying higher rate tax - increase your pension contributions or something. I'm hoping the government introduces some common sense to this legislation - at the moment I receive £3800 PA tax free in child benefit. Next year if I pass the £42.5K threshold I will need to pass £52K just to get back to where I started - and if the legislation is very badly worded then I will be worse off between these figures.
If the housing allowance forms part of your package and presumably taxed then this is income for tax credit purposes.
The TC system is highly complicated, but I have written a spreadsheet that can check what you will receive based on your income, no of kids and childcare costs - PM me if you want me to work some figures for you.
FYI the only reason I did this is I had so many clients ask me to as the system is as clear as a pea soup fog and for those whose numeracy is not a core skill all but uninteligible.
David
The TC system is highly complicated, but I have written a spreadsheet that can check what you will receive based on your income, no of kids and childcare costs - PM me if you want me to work some figures for you.
FYI the only reason I did this is I had so many clients ask me to as the system is as clear as a pea soup fog and for those whose numeracy is not a core skill all but uninteligible.
David
sumo69 said:
If the housing allowance forms part of your package and presumably taxed then this is income for tax credit purposes.
The TC system is highly complicated, but I have written a spreadsheet that can check what you will receive based on your income, no of kids and childcare costs - PM me if you want me to work some figures for you.
FYI the only reason I did this is I had so many clients ask me to as the system is as clear as a pea soup fog and for those whose numeracy is not a core skill all but uninteligible.
David
I have sent you a pm. My main concern is £1800 housing allowance. The TC system is highly complicated, but I have written a spreadsheet that can check what you will receive based on your income, no of kids and childcare costs - PM me if you want me to work some figures for you.
FYI the only reason I did this is I had so many clients ask me to as the system is as clear as a pea soup fog and for those whose numeracy is not a core skill all but uninteligible.
David
Just want to know that how much i would be getting per month from £1800 housing allowance.
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