child tax credit from 2011 2012

A question about : child tax credit from 2011 2012

Hi,

I just need someone to clarify the cut off for getting tax credits 2011-2011.
has it now gone down to a family earning no more than Ј40,000 a year?
Also is it correct that from april 2012 the cut off for getting child tax credit is a couple joint income of Ј25,000 a year????

We have 6 children, 5 that live with us all under 16.

please can someone let me know

thanks

Best answers:

• I don't know the details but the rates and thresholds for tax credits can be found on the HMRC website
  https://www.hmrc.gov.uk/rates/taxcredits.htm
• Hi,
  I am not getting to grips with the first income threshold and the second income threshold.
  does it mean first and second income put together so my income and husband ???
  i am only looking as child tax credit not tax credit
  looking at 2011 second threshold is 40,000 and first for child tax credit only is 15,860 is that put together meaning if you earn no more than these two figures put together 55,860 that we will still get child tax credit ???
  i really have no idea
  am more worried for 2012 when on the news it said threshold would go down to 25,000 is this a joint income ?
• Also what does the income disregard mean?
• OK firstly - ignore media !!!!!!!! which talks about a "cut off" for tax credits. Most journalists don't seem to have a clue about tax credits. Cut-off's can be worked out for very specific circumstances by working out when the elements are tapered to zero, but there is NO general income cut-off for tax credits AT ALL. Someone with 10 disabled kids and childcare costs could get tax credits on an income over Ј200,000 !! (that'll get the ranters ranting! )
  To work out your entitlement you first add the elements you are entitled to. If you have kids then you are entitled to the WTC if you work at least 16 hours.
  Then apply the income reduction. Income over the "first income threshold" reduces all WTC and CTC by the rate given (39% this year, 41% next). Except the family element (Ј545), which is retained either till you get to the "second income threshold", or till the rest is gone. WTC is reduced first, then CTC when all WTC is gone.
  If you are not entitled to WTC (eg work under 16 hours) then use the "First threshold for those entitled to Child Tax Credit only"
  Income used initially when you claim is last tax year's. If your income this year goes up by less than the "disregard" then your claim is still correct, and you don't have to tell them and there'll be no overpayment this year. (But it's best to tell them so your payments next year will start correct).
  If your income goes up by more than the disregard then there WILL be an overpayment if you don't tell them straight away.
  If your income goes down then you are entitled to more, you can phone and tell them and your payments will go up (providing they believe you) or you can wait till the end of the year and you'll get a lump sum.
  Confused??
• gosh ..................yes still confused. i am not thick honest.
  we have never been entiled to wtc only child tax credit..............earning about Ј36,000 joint income this year was Ј31,000 last year and did have 6 children living with us but now only have 5.
  so is the media not correct then?? the cut off to not get ctc this year is not 40,000 and 2012 not 25,000?
  i get the forst bit where we have to add the 2555 for each child x 5 but a bit lost where have to apply the income reduction which for us would be the child tax credit as earn to much for wtc
• Thanks for explaining how all the numbers work, zagles. I do follow what you have done for the OP, but I don't see how to apply it to my figures, as we are over the second income threshold. I would be very grateful if you could advise me, too, please.
  I'm guessing that we are one of the families who will lose them altogether.
  Husband and I jointly earn 41,7864 and we have just the one child. With no childcare we receive only the family element of Ј545.... Will this stop in April?
  Many thanks.
• When I called the tax credit line the guy on the phone told me cut off was Ј41,270 on joint income ? Some websites stat Ј41,376.
  Talk about confusion, lol
• Ok i have some figures to: tried to wokr on this and got confused.........lol..........
  My earnings from April 2010 -2011 will be Ј6,604 this figure includes my lastest salary drop and care allowance at 53.90 per wk ( I have told the tax people my contract hours have lowered at work, due to caring for my child and from 6th dec salary is now Ј3985, they said I need to let them know this again in April)
  Hubby will have earnt Ј34,602 (this includes overtime payments) as his basic is around Ј2808 , overtime is not regular it's if and when..
  2 children under under 16, but eldest child now receives dla at middle rate, and mobility rate lower.
  Do you think will be entitled to Tax credit, currently the have now given us disablity element to this..but wonder what will occur come April 2011 onwards ?
  Regards