tax credits

RUBYMIA123

hi i changed my job half way through the tax year last year and was going to earn more than i had been, went up from about 6500 to 10000 i informed tax credits who then put my money up, and then in april they put my money down again but ive just been given the option of promotion at work which would mean more hours and more money, therefore i would probably earn about 13000 this year, how would that affect my tax credits? would they go up or down?

seeya23

they will go down

JMerch

They will probably go down... but not till next April. If you look at you award notice it will show an income disregard, usually about £25k above what you earned last year. If your income is under that disregard figure then your payments won't go down till April 2010. Let the TCO know anyway though, to make sure you get the correct payments from the off in april.

Also when your payments do go down, they will only be by about £1170 over the year (39% of the difference). So you should still be better off overall.