Child Tax Credit

Discussion in 'Finance, Property, Law' started by mattmo74, Feb 7, 2008.

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  1. Does anyone know anything about how this maze of a system works, particularly the uppper salary limit that makes it not worth claiming.

    We've just had twins and are looking to finance nursery places, but as usual it's looking like we'd be better off signing on and ditiching the house for a rented one bed flat in the $hitty part of town.

    Help :(
  2. I had the same problem, as both myself & the wife work, pay our taxes etc etc not illegal etc etc .......... you get bugger all !
    in fact all they would give us is a paltry £35.00 !!!
    hardley a weeks worth of nappies and bonjela ......
  3. You are entitled (if serving) to get childcare vouchers which can save you around a thousand pounds a year depending on your circumstances.

    I have just registered and get my first vouchers at the end of Feb, hopefully it will work.
  4. Mr_Fingerz

    Mr_Fingerz LE Book Reviewer

  5. As rule of thumb if you and your wife earn less than 60K you get some cash, depending on the age and number of kids...

    The revenue will work out the families gross income for CTC as follows:

    Your gross income
    + Your gross wife's income
    + Taxable Benifits (not Child beneift)
    + Taxable Saving Income (minus the first 300 quid)
    + any other income
    - any pension contributions:

    If your gross income is less 50K you get the child component of the allowance (500 odd quid per sprogg or 1000 quid if your sprogg is under one), or if gross income between 50-60K a pro-rata version of the allowance, orif you earn greater than 60K bugger all. Unlikey but if you earn less than 18K IIRC you should get back all the Income Tax you pay.

    It may not work out as that much but for the cost of filling in a form and doing about an hours admin each year it is probably worth it. It's your money at the end of the day..... Payable to HM Forces posted anywhere in the world....add to child benefit.
  6. have three kids two in child care, am on 31k a year and receive 492£ a month! just ring them up check and double check!
  7. You can only receive money towards nursery fees as part of a working tax credit award.

    I would imagine its worth claiming the ctc if you have two young ones though.
  8. I rang them last Friday and was told that the upper limit was £57000 per year and that I wasnt eligible as combined my wife and I earn more than that, I explained that I had left the army in November and was doing the stay at home dad thing now and that our yearly earning were now no way over £57000, their reply was to reapply in the new tax year, see you in April.
  9. Now if that was the other way round, and your income increased, they would probably tell you the same thing then demand back their overpayment in April :x

    At least you should get a nice lump sum sometime in the future from your underpayment!
  10. I think when you get your forms throught the post and complete them next year they will take into account you fall in earnings.

    I've never had a problem with my local tax office, in fact they have been very good with me and sorted out problems without too much fuss.
  11. lets hope eh!
  12. So then; it works out cheaper for me and my partner to work for 5 days a week and put the juniors in nursery for 5 days a week for a whopping £1215 pcm. We can't do it any other way, no rellies, and local child minders don't seem to want to have to look after twins.

    We both work for the same company, who have said that they will let my other half do the flexible working thing to an extent, but will tun down any application I make. We would incidnetly get the Busy Bees vouchers, but hey £200 pcm.

    Pastures new me thinks. Industry shortfall and all that :)