sancha wrote:Thanks CR001,
Can I claim child tax credit as well (not sure what is it and whether we can be eligible or not based on our salary - will google it and search it if you have a useful link that would be helpful)
Regards
Tax Credits is based on the last tax years salary of you and your wife, and then a 2.5k disregard based on this years salary. i.e.
earn 20k jointly last year and expect to earn 16k jointly this year, the Tax Credit claim is based on earnings of 18.6 for this year.
earn 20k jointly last year and expect to earn 24k this year, the Tax Credit claim is based on earnings of 22.5K this year.
As a rough guide, under present rules, the poverty line is set at about 26k for one child, about 31k for two children and 36k for 3 children.
If you are in an area where the new welfare payment Universal Credit is already in, then there are different rules and benefit claims will have to made every month. Tax Credits is one of the income based benefits that UC is replacing.
Just be aware that:
from April 2016, Tax Credit is one of the benefits that have been frozen for 4 years.
From April 17
the amount paid to Tax Credits claimants will be reduced
exisiting Tax Credits claimants will start to be moved to UC, which has tougher work requirement rules for the parents and can be less money given.
the 2 child limit for Tax Credit/Universal Crerdit claimants starts, with some transitional protection for existing claimants and any children on their claim before April 2017.
