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Tax Credits - please explain what they are all about!

M

moomoo

Not so yummy mummy
Can someone please explain what these are and how they are calculated?

When I last worked 9 odd years ago, I got my wages and that was it. Now I get my wages plus tax credits. The tax credits (working and child combined) are more than my monthly pay and I just don't understand it. :confused:

I'm not complaining of course but I really don't get it........ :(
 
Sas is your man for tax credits info moomoo!

It's all very straightforward if you're on benefits but I have no idea how it works in relation to low incomes etc.

Defo worth checking out though, given that they're notorious for making huge overpayments then claiming the excess back at a later date (they may have sorted that out by now tbf - it was a while ago that I remember hearing lots of stories about the overpayments).

PM Sas!
 
sheothebudworths said:
Sas is your man for tax credits info moomoo!

It's all very straightforward if you're on benefits but I have no idea how it works in relation to low incomes etc.

Defo worth checking out though, given that they're notorious for making huge overpayments then claiming the excess back at a later date (they may have sorted that out by now tbf - it was a while ago that I remember hearing lots of stories about the overpayments).

PM Sas!
Click to expand...


They cant claim it back now...or so my mum said, which is good as they have over payed me and the review is due now...
 
Sas is the xpert, but having alspo worked in the Tax Credit system I can tell you now that nobody really understands them. Certainly not the government which introduced them, hence the underpayments to some, overpayment and subsequent reclaiming from others causing them untold hardship.
 
sheothebudworths said:
Sas is your man for tax credits info moomoo!

It's all very straightforward if you're on benefits but I have no idea how it works in relation to low incomes etc.

Defo worth checking out though, given that they're notorious for making huge overpayments then claiming the excess back at a later date (they may have sorted that out by now tbf - it was a while ago that I remember hearing lots of stories about the overpayments).

PM Sas!
Click to expand...

I do pm Sas though, and he is wonderfully helpful but this is more a general question rather than a specific one. I've really no idea about them and it seems odd that I get more in tax credits than I get wages so I just wondered how they are calculated. I'm taxed on my salary but get more than I'm taxed in credits iyswim. :confused:

Betty, you say it doesn't go far but it's more than I earn! It tops my wages up to a liveable amount. So where does it come from?
 
Sweaty Betty said:
It tops up your wages when working part time as an incentive and much needed bonus to small wage earners who have kids....

it doesnt go far believe me....
Click to expand...

That's the idea although what has actually happend is it's allowed employers to get away with paying shite wages........


:mad:


i would actually be totally fucked with out it though !


:mad::(
 
According to the award notice I got today, I'll be getting £3573 in working tax credit and £6810 in child tax credit. That's loads. :eek: It seems too much iyswim. :hmm:

I could give up work and live off that!
 
moomoo said:
Betty, you say it doesn't go far but it's more than I earn! It tops my wages up to a liveable amount. So where does it come from?
Click to expand...

I dont know what you earn so i cant comment, but all i know is that i still pay as much as a couple for Council tax have to go private for good dental treatment for my daughter and whatever happens dont think about getting promoted- i nearly lost my home after HB took 3 months to decide they owed me fuck all....

I thought i was minted when i first went on it, not now:( and last week thatnks to gobshite brown my pay packet was 20 squid lighter:mad:
 
moomoo said:
According to the award notice I got today, I'll be getting £3573 in working tax credit and £6810 in child tax credit. That's loads. :eek: It seems too much iyswim. :hmm:

I could give up work and live off that!
Click to expand...

I couldnt live off 10 k a year and pay what i have to at the moment and i dont even have a credit card, loan or even over draft...
 
Sweaty Betty said:
I couldnt live off 10 k a year and pay what i have to at the moment and i dont even have a credit card, loan or even over draft...
Click to expand...

I know what you mean but what I meant was that it looked like loads considering it's 'free money' iyswim. :oops:

I don't spend any money these days anyway. I can't get to the shops now I'm working. :(
 
moomoo said:
I know what you mean but what I meant was that it looked like loads considering it's 'free money' iyswim. :oops:

I don't spend any money these days anyway. I can't get to the shops now I'm working. :(
Click to expand...

Free money my ass moomoo:D I stress fucking buckets about coping on it, let alone see it as some handout......
 
Sweaty Betty said:
Free money my ass moomoo:D I stress fucking buckets about coping on it, let alone see it as some handout......
Click to expand...

But before tax credits, you would only have had your salary to live on. That's what I'm saying. So it's a nice bonus. :)

So, where does it come from and how is it calculated? :hmm:
 
moomoo said:
But before tax credits, you would only have had your salary to live on. That's what I'm saying. So it's a nice bonus. :)

So, where does it come from and how is it calculated? :hmm:
Click to expand...

I believe there were other incentives and top ups just not called tax credits, my mum was a single working parent and she got help cant remember what it was called...

sorry moomoo its about bloody time they assisted single parents and there is still acres of improvement to make..........
 
Sweaty Betty said:
I believe there were other incentives and top ups just not called tax credits, my mum was a single working parent and she got help cant remember what it was called...

sorry moomoo its about bloody time they assisted single parents and there is still acres of improvement to make..........
Click to expand...

I couldn't agree more. Employers being more flexible about hours would be a start. :rolleyes:

I've managed to knock them down from 27 to 25 but I only want to do 20. I'm not taking the job permanently unless I get Fridays off dammit. :mad:

My friend has landed the perfect job, school hours and all school holidays off. :eek: It's not in a school either! Lucky bugger!
 
moomoo said:
I couldn't agree more. Employers being more flexible about hours would be a start. :rolleyes:

I've managed to knock them down from 27 to 25 but I only want to do 20. I'm not taking the job permanently unless I get Fridays off dammit. :mad:

My friend has landed the perfect job, school hours and all school holidays off. :eek: It's not in a school either! Lucky bugger!
Click to expand...

I know what you mean about the sums seeming alot on the reward they give you but in realtime especially lately its just pissing holes out of me at the moment:mad:

I work 25 hours also, spread out over the week, but my next promotion is management full time and im thinking of refusing it becuase im only gonna be worse off once tax credits and all other assistance gets reduced...

its truly a minefield
 
What do you do in the school holidays Betty? This job is up to end of July but there may be a permanent position after that. I just don't know what to do with the boys in the holidays. :rolleyes:
 
Im lucky with employers as they are a child friendly company and im salaried pensioned and secure, BUT everytime i climb the ladder im faced with less money and its pissing me off no end!!!
 
the old "family income supplement" was around when i was younger(my mum used to get it) then family credits came along (there *may* have been something in between those two, but can't remember atm), now tax credits. all basically doing the same thing - topping up low wages for families with children. the difference is, now the amount definitely brings people more in line with full time work, but being allowed to work part time. obviously, the more you earn, the less you receive, but now it's a tax thing, not a benefit. rather than have the different tax allowances, they brought this in. i work self-employed and couldn't survive without it.
 
moomoo said:
What do you do in the school holidays Betty? This job is up to end of July but there may be a permanent position after that. I just don't know what to do with the boys in the holidays. :rolleyes:
Click to expand...

And again im very very lucky that i pay diddly child care costs as my ma lives in same street- which has various other problems attached to it!!:D

its the child care cost angle that is the big major fuck up for most...:mad:
 
They have phased out married couples allowance and other benefits that used to pick up some of the slack that tax credit does. my dad also used to get single parents allowance (or something like that) on top of his child benefit and income support which also no longer exists.
 
Sweaty Betty said:
They cant claim it back now...or so my mum said, which is good as they have over payed me and the review is due now...
Click to expand...

umm...yes they can.

what review are you talking about? renewal? if you have been overpaid, it'll be taken from ongoing awards.
 
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