Tax Doesn't Have To Be Taxing....

[Crocodile]

....but Tax Credits are something else!

Trying to help a mate with his & just spent 1/2 hour on the HMRC site trying to get some idea how these things work. Gave up & rang their (no) Helpline. Seems "it depends on number of factors" - no kidding!

The Rates & Allowances page has "rates" & "thresholds" but nowhere can I find how these are applied. Can anyone point me to a resource that explains how these things are actually calculated?

[pjclark1]

try this online calculator
http://www.workingfamilies.org.uk/asp/calculator/

[Crocodile]

Originally Posted by pjclark1

try this online calculator
http://www.workingfamilies.org.uk/asp/calculator/

Thanks, there's something very similar on the HMRC site. What I was really looking for though was a full breakdown of how the figures are calculated. After a lot of digging, I found it buried in this document.

[apul]

Trying to work this out for myself too.

Its certainly not easy as it just assumes you are the main earner for the household!
Could anyone shed some light on the situation. I currently pay no rent, although they may change soon. I just started work about a month ago and work approx 30hrs/week at £6/hr. No children, disabled, elderly, interesting people here.

Thanks

[eric pisch]

Originally Posted by apul

Trying to work this out for myself too.

Its certainly not easy as it just assumes you are the main earner for the household!
Could anyone shed some light on the situation. I currently pay no rent, although they may change soon. I just started work about a month ago and work approx 30hrs/week at £6/hr. No children, disabled, elderly, interesting people here.

Thanks

your one of the people hit badly by the unfair loss of the 10% rate

As for the tax credit system, it may as well be written in Latin it would make more sense imo.

[Crocodile]

Originally Posted by apul

Trying to work this out for myself too.

Have a look at the link pjclark1 posted together with the pdf I linked to in the following post.

The HMRC calculator is here.

If you're under 25, not part of a couple & don't have kids, it looks like you don't qualify.

[Duncan G]

Originally Posted by crocodile

Have a look at the link pjclark1 posted together with the pdf I linked to in the following post.

The HMRC calculator is here.

If you're under 25, not part of a couple & don't have kids, it looks like you don't qualify.

Unless you have a disability, are aged under 25 and work at least 16 hours a week. Then you can apply.

[Duncan G]

Originally Posted by apul

Trying to work this out for myself too.

Its certainly not easy as it just assumes you are the main earner for the household!
Could anyone shed some light on the situation. I currently pay no rent, although they may change soon. I just started work about a month ago and work approx 30hrs/week at £6/hr. No children, disabled, elderly, interesting people here.

Thanks

You aged over 25? Single? Then you may get £1347.99 a year working tax credits.

[Crocodile]

Found an interesting little snippet to add to the abolition of the 10% starting band for PAYE. Although the Tax Credit rates & thresholds have risen, so has the clawback rate for anyone earning over £6,420. It's now 39%, up from 37%....