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    • atlantis187
    • By atlantis187 18th Sep 16, 1:37 AM
    • 913Posts
    • 365Thanks
    atlantis187
    Free School Meals + WTC + Free Prescriptions
    • #1
    • 18th Sep 16, 1:37 AM
    Free School Meals + WTC + Free Prescriptions 18th Sep 16 at 1:37 AM
    I was wondering if some of u clever folk could work this out for me please.
    My hours are being reduced at work and I'm trying to work out what is the best situation for us in regards to claiming the following:

    * working tax credit
    * free prescription through tax credits
    * free school meals

    We have 4 kids under 16. I can't work out weather it will be best for me to do
    23 hrs a week = gross pay £12850 (forgoe WTC) for free school meals or do
    25 hrs a week = gross pay £13960 (claim WTC) and not the free school meals
    Also how does the free prescriptions factor into the above 2 scenarios?

    Thanks
Page 2
    • zagfles
    • By zagfles 18th Sep 16, 4:01 PM
    • 10,985 Posts
    • 9,028 Thanks
    zagfles
    So the difference working the extra 2 hours:
    Pay: (13960-12850)*0.68 = +754.80 (after tax & NI)
    TC loss: 11518-11665 = -147
    FSM loss : -38*38 = -1444 (assuming all at school)

    So clearly you're better off by over £800 on 23 hours. And obviously more time off! The other thing to bear in mind is that the school will be very happy if you do 23 hours as they'll get the pupil premium, and will continue to get it for 6 years after you stop being entitled to FSM.
    • atlantis187
    • By atlantis187 18th Sep 16, 10:03 PM
    • 913 Posts
    • 365 Thanks
    atlantis187
    So the difference working the extra 2 hours:
    Pay: (13960-12850)*0.68 = +754.80 (after tax & NI)
    TC loss: 11518-11665 = -147
    FSM loss : -38*38 = -1444 (assuming all at school)

    So clearly you're better off by over £800 on 23 hours. And obviously more time off! The other thing to bear in mind is that the school will be very happy if you do 23 hours as they'll get the pupil premium, and will continue to get it for 6 years after you stop being entitled to FSM.
    Originally posted by zagfles


    Thank you for this but I aint got a clue how you have worked all this out.


    Could you please break it down for me even more
    also why do u times my gross pay by 0.68?
    • zagfles
    • By zagfles 18th Sep 16, 11:25 PM
    • 10,985 Posts
    • 9,028 Thanks
    zagfles
    Thank you for this but I aint got a clue how you have worked all this out.


    Could you please break it down for me even more
    also why do u times my gross pay by 0.68?
    Originally posted by atlantis187
    20% tax and 12% NI makes 32%, so you're left with 68% as take home pay on the difference (the personal allowance is used up in both cases even if you get a transfer from your wife).

    Tax credits just the difference between the figures BB quoted.

    FSM you worked out £38pw, I just multiplied by the number of weeks in the school year, usually 38.
    • atlantis187
    • By atlantis187 19th Sep 16, 12:28 AM
    • 913 Posts
    • 365 Thanks
    atlantis187
    How can I also work out a rough estimate for my net pay for the both figures above, I also pay into a pension which I think is around 5.8% a month.
    • Darksparkle
    • By Darksparkle 19th Sep 16, 7:37 AM
    • 3,088 Posts
    • 1,925 Thanks
    Darksparkle
    How can I also work out a rough estimate for my net pay for the both figures above, I also pay into a pension which I think is around 5.8% a month.
    Originally posted by atlantis187
    Google salary calculator.
    • atlantis187
    • By atlantis187 19th Sep 16, 10:29 PM
    • 913 Posts
    • 365 Thanks
    atlantis187
    Google salary calculator.
    Originally posted by Darksparkle
    Thank you Mr.helpful
    • Darksparkle
    • By Darksparkle 19th Sep 16, 10:46 PM
    • 3,088 Posts
    • 1,925 Thanks
    Darksparkle
    Thank you Mr.helpful
    Originally posted by atlantis187
    Excuse me, I took the time to calculate for tax credits for you! Next time I won't bother.

    There is an excellent salary calculator you could use that would have helped you!
    • atlantis187
    • By atlantis187 19th Sep 16, 11:43 PM
    • 913 Posts
    • 365 Thanks
    atlantis187
    Excuse me, I took the time to calculate for tax credits for you! Next time I won't bother.

    There is an excellent salary calculator you could use that would have helped you!
    Originally posted by Darksparkle
    okay sorry for being rude mate, i've had an awefull day at work and I'm really stressed out
    • xylophone
    • By xylophone 20th Sep 16, 1:00 AM
    • 18,446 Posts
    • 10,379 Thanks
    xylophone
    Try https://listentotaxman.com/
    • atlantis187
    • By atlantis187 20th Sep 16, 10:43 PM
    • 913 Posts
    • 365 Thanks
    atlantis187
    anyone know anything about council tax aswell what the is earnings threshold to be entitled for council tax support?
    • Londonsu
    • By Londonsu 20th Sep 16, 10:55 PM
    • 888 Posts
    • 1,667 Thanks
    Londonsu
    anyone know anything about council tax aswell what the is earnings threshold to be entitled for council tax support?
    Originally posted by atlantis187

    I think councils set their own rate so best to go on the website of your local council and see if there is any information on there, if not ring and ask them
    • McKneff
    • By McKneff 20th Sep 16, 11:08 PM
    • 34,595 Posts
    • 44,518 Thanks
    McKneff
    .................................................. ...............
    No one can make you feel inferior without your consent
    • zagfles
    • By zagfles 21st Sep 16, 8:57 AM
    • 10,985 Posts
    • 9,028 Thanks
    zagfles
    anyone know anything about council tax aswell what the is earnings threshold to be entitled for council tax support?
    Originally posted by atlantis187
    Usually means tested rather than income tested, so capital will count, and if it's like HB then pension conts are only 50% deductible.
    • atlantis187
    • By atlantis187 22nd Sep 16, 11:22 PM
    • 913 Posts
    • 365 Thanks
    atlantis187
    can buying and selling on eBay be classed as a job working 5-10 hrs a week. Does this need to be declared to tax credits people?
    • Ames
    • By Ames 23rd Sep 16, 12:00 AM
    • 15,207 Posts
    • 25,761 Thanks
    Ames
    Yes, buying and selling on ebay counts as self employment. You need to declare the income to tax credits, and the profit to HMRC as it could be taxable.
    Unless I say otherwise 'you' means the general you not you specifically.


    Recent reads: Everyday Sexism by Laura Bates. Headscarves and Hymens by Mona Eltahawy. Justice - What is the Right Thing To Do by Michael Sandel. Is Multiculturalism Bad For Women by Susan Moller Okin.
    • atlantis187
    • By atlantis187 23rd Sep 16, 12:15 AM
    • 913 Posts
    • 365 Thanks
    atlantis187
    Yes, buying and selling on ebay counts as self employment. You need to declare the income to tax credits, and the profit to HMRC as it could be taxable.
    Originally posted by Ames


    If I don't make a profit from this initially but still put the hours how can I prove to tax credits that I am doing the hours that I am doing on ebay?


    Also what if the ebay business is in my wife's name as she is unemployed does this still need to be declared to HMRC as we don't think the profits will never reach her personal tax free allowance.
    • Darksparkle
    • By Darksparkle 23rd Sep 16, 7:36 AM
    • 3,088 Posts
    • 1,925 Thanks
    Darksparkle
    If I don't make a profit from this initially but still put the hours how can I prove to tax credits that I am doing the hours that I am doing on ebay?


    Also what if the ebay business is in my wife's name as she is unemployed does this still need to be declared to HMRC as we don't think the profits will never reach her personal tax free allowance.
    Originally posted by atlantis187
    Yes your wife will still need to declare it. Even if they don't reach the tax allowance, they could reach the NI allowance which is much lower.

    If it's your wife's business it would her that would declare any hours worked, unless she is employing you.
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