Tax Credit and increase in salary

michellefromessex

Hi, at present I work 11 hours a week and between 3rd Nov to end of this financial year I will earn a further £2,301. However I am under threat of redundancy due to our job diminissing, I have applied for another position within the same company but means my hours will increase to 20 per week, this means my salary between 3rd Nov (this date is when the position is due to start) to end of this financial year will be £4,683. This means my salary will increase by £2,382.00 between now and 1st April 2009, do I have to let the Tax Credit office know of this increase, as I read somewhere about any increase under £2,500 needs not to be reported, do I have to tell them that my hours are changing from 11 to 20 per week?

At present me and my partner qualify for WTC and CTC as he runs a small business that isnt doing too well atm - another reason why I need to increase my hours and salary.

Many thanks for taking time to read this.

proview

I would advise you to let the tax credit know of changing your work hours and salary increase to be on your safe side or otherwise u could end up overpayment if u don't tell them until at the end of tax year.

JOHNSTONE1

As your current tax credit award is based on last years earnings not this year, unless you earnings have gone up by more than £25000 it will make no difference to your current award. However it is best to let them know of any increase however small as it will make a difference to your provisional payments you get next year from April 09 to whenever you send back your annual review pack. If you dont do this you may end up owing them money back and you dont want that to happen.

I would defnitely let them know about an increase in hours as this is important and may effect your current award.

Hope that helps

michellefromessex

ok thankyou both for your help and advice.