30 Hr Element

scrounger_2

I am in the process of appealing against an "overpayment" award. Reading through my paperwork it lists the 30 hr element. Is this where you are paid a sum for working 30 hrs or more, and is there a fixed figure for this?.

Ta

[Deleted User]

http://www.hmrc.gov.uk/rates/taxcredits.htm

The figures are for the full year.

twiglet98

How does that make sense? My work contract is 20 hrs a week, I've been averaging about 24 hours. I'm now have the option to increase my hours and would be delighted to earn more by working more. I get WTC/CTC now, my youngest is 17 and taking A levels next year so I'll lose CB and CTC, but is it really the case that increasing my hours to more than 30 a week would mean an increase in WTC too? If so, is it averaged over the tax year, should I tell them as soon as I go over 30 hours or wait until 2010 renewals?

pennypinching_2

Twiglet98 you will get WTC/CTC and CB for any children in full time edcuation so could possibly have another 2 yrs for your 17yr old. Also if you work over 30 hrs you need to inform TC's as you get an extra allowance, but of course if you are doing extra hours you will be earning more money, so swings and roundabouts.

twiglet98

Thanks, at £6.50/hour I'd only earn about £13500 pa if I did a 40 hour week. I just don't understand how earning more, by working more hours each week, qualifies for more WTC in addition to more pay - surely the logic would be that earning more meant less 'benefit' (though I know it isn't a Social Security benefit)?

[Deleted User]

You get the 30 hour element which adds a bit on to your award, but if your income increases your tax credit award reduces.

twiglet98

Thank you, I rang the helpline and was told that they should be informed if the 30 hours is exceeded for four consecutive weeks, in which case they would add it and adjust my payments. Similarly, if I then do fewer than 30 hours for four consecutive weeks they must be told so they can adjust it again. They do not have a record of my estimated earnings for this tax year - I renewed by phone, no changes, and don't recall being asked for an estimate - but any alteration as a result of earning more (which I may well do, by working more hours) will be made when the 2009-10 P60 is issued.

I'm still not clear, though, despite asking him several times in various roundabout ways, how I can calculate what overpayment I'm likely to have clawed back.