In the last post I looked at how much of your pay check goes into national insurance and tax both in absolute value and percentage. In this post I look at how much it is possible to claim in tax credits and how this would have changed under the now scrapped cuts proposed in the summer. The tax credit system as a whole is pretty complicated and there are many rules and regulations about who can claim etc. There are also added complications when situations change during a year, for example due to change in earnings or birth of a child. I will not look at the complicated edge cases but rather some simple situations so that trends can be seen. I am also not in any way an expert in taxes, in fact I have spend the vast majority of my life in education and therefore not paying any tax. Furthermore even though I currently have a job and pay tax it is in Germany, so I have no first hand experience. This study is purely for curiosity's sake. To accurately calculate your own claim to tax c
Interesting and useful things that I have found out and want to share.