Discussion archive

Top Working Tax Credit & Child Tax Credit topic #1567

Subject: "working tax credit and disability" First topic | Last topic
Jeffery
                              

Advice Assistant, Community Links, London
Member since
15th Jul 2005

working tax credit and disability
Thu 09-Feb-06 08:25 AM



What is the highest amount a client can earn (gross pay) and still qualify for working tax credit if they are

single
receive lower amount of DLA mobility
meet all qualifying conditions for disability

and how do you calculate this?

Much appreciated.

  

Top      

Replies to this topic
RE: working tax credit and disability, matherj, 09th Feb 2006, #1
RE: working tax credit and disability, Derek, 09th Feb 2006, #2
      RE: working tax credit and disability, Jeffery, 10th Feb 2006, #5
RE: working tax credit and disability, DavidS, 10th Feb 2006, #3
RE: working tax credit and disability, nevip, 10th Feb 2006, #4

matherj
                              

Welfare Advice Officer, Melville Housing Asscociation, Dalkeith, Midlothia
Member since
22nd Jan 2004

RE: working tax credit and disability
Thu 09-Feb-06 09:40 AM

I think it will be around £15733. This is based on a max credit of £1665 basic plus disabled worker £2225 i.e. max credit of £3890. Threshhold £5220. This does not take into account any disregard for increase in income from previous tax year.

Perhaps someone can re-check this calculation for me?

  

Top      

Derek
                              

CAB Adviser, Esher CAB
Member since
09th Mar 2004

RE: working tax credit and disability
Thu 09-Feb-06 07:15 PM

From Rightsnet benefit rates, basic £1620, disability £2165, 30+ hour £660. Using these figures, threshold £5220 and cut off 37% gives WTC of £1.75 p wk at £17K gross. If hours are less than 30, it is £1.49 at £15250. Perhaps someone could confirm whether this is right?

  

Top      

Jeffery
                              

Advice Assistant, Community Links, London
Member since
15th Jul 2005

RE: working tax credit and disability
Fri 10-Feb-06 03:05 PM

I calcualted it at £1.42 if person is working less than 30hours a week using the gross yearly income figure of 15250 for 2005/2006.Thanks.

  

Top      

DavidS
                              

Bureau Assistant, Chelmsford Citizens Advice Bureau
Member since
24th May 2005

RE: working tax credit and disability
Fri 10-Feb-06 10:46 AM

I think the calculation is to take the relevant elements, divide them by 37 and multiply by 100 and then add the answer to 5220!

For 2005/6 this gives 1620 (Basic)+ 660 (30-hour) + 2165 (Disability) = 4445 / 37 = 120.135 * 100 = 12013 + 5220 = £17233. For 2006/7 this will be 1665+680+2225 = 4570/37*100 + 5220 = £17571.

This, of course, makes no allowance for changes in earnings from the previous year!

Simple!!!!!

  

Top      

nevip
                              

welfare rights adviser, sefton metropolitan borough council, liverpool.
Member since
22nd Jan 2004

RE: working tax credit and disability
Fri 10-Feb-06 10:59 AM

Thats a good formula. I haven't come across that before. 37% of £17,571-£5,220=£4,569.87. £1,665+£2,225+£680=£4,570. As you say, simple!

  

Top      

Top Working Tax Credit & Child Tax Credit topic #1567First topic | Last topic