Working Tax Credits

masonsmum

Need to ask a question for a friend who is a single parent and is currently working 16 hours per week and receives a weekly payment of £118. However her boss has asked her to take on more hours - is there a maximum hours you can work and still recive this payment or would it stop if she took more hours at work.

Thanks in advance for any advice.

sarflee

There's no limit on hours, but the maximum income for working tax credits is currently £15575 for the year, then the entitlement is nil. Between £6420 and the max income, the entitlement is reduced by 39p for every pound.

An increase of less than £25000 is not taken into account until the following award period.

Also, if they work over 30 hours a week, another working tax credit element kicks in which I thinks is work about £12-13 per week. I don't know what the income threshold for that is though.