- Child tax credit
- The Flying OxMember
Here’s a question to rile some of you. I gather I may well be a good 12 months or so behind the curve on this, and I may be some way off the mark in my undertanding of how these things work.
Say Mr A. N. O’Nymous earned £5k over the cut-off point for the child tax credit thing, could Mr O’Nymous put that £5k into their pension to end up under the limit? If so, and given the cost of child care and the 40% tax on that £5k, would it be financially beneficial to “lose” the £5k and pick up some lovely government handouts in its place?
I know nothing of these things, and it’s never been something in my sphere of awareness, but it would get on my hypothetical nerves if my hypothetical wife’s hypothetical best friend received child tax credits despite their hypothetical total household earnings being roughly £10k more than ours. Hypothetically speaking.
Posted 5 years agodruidhMember
If we hypothetically earnt so little that we hypothetically qualified but we felt we weren’t “poor” enough to deserve it, we wouldn’t hypothetically claim it.
What I’m saying is that the way it is calculated makes little sense as it does not properly cover “household income”.Posted 5 years agokcalSubscriber
IIRC you fill in the accompanying worksheet (825 ?) which does allow pensions to be taken into account. and gift aid donations, inter alia.
Used to be a nightmare filling in the form in this household, wife with two very part-time (and randomly houred) employments, pension contrib, gift aids, me self-employed with some investment income and a property rented out (plus pensions and gift aid of course).
much simpler now wife doesn’t work 🙂Posted 5 years ago
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