Tax credits and employment help needed

storm35

Caz3121 wrote: »

the entitlement tables are here http://www.hmrc.gov.uk/taxcredits/people-advise-others/entitlement-tables/work-and-child/work-no-childcosts.htm
so if you increase your household income by £10k from work you will lose approx £4k in tax credits, so still £6k increase.
However there is a £25k disregard so you 'may' not be impacted by this till next April - there is a sticky at the top about the £25k disregard

Thank you, its bit clearer now, off to look at the sticky in a mo, thanks again xx

storm35

themonkeybutler wrote: »

You taking a job 16 hours, 5 hours, 500 hours, whatever, makes no difference as your partner is already working over 30. The only difference the hours YOU work would make is your entitlement to the childcare element of wtc. And it would be in your favour, if you pay for childcare.

Your award this year is provisionally based on your total household earnings last year. Unless your income rises by 25k plus between april 2010 and april 2011, your earnings wont affect your award. EG you eanred £13k last year, come april next year year youve earned 20k - your claim would be finalised on £13k, and your 2011-2012 award would be based on the 20k which is when you would expect to see a drop. For my sins, Im a tax credit officer, so I know what im talking about.

So if i got a job it would have to be part time, and i wold need to try to keep our income under 20-25k that right?
We dont need child care costs, as we would work in shifts.
Thank you

nannytone_2

there is a 25k disregard...............that means for the year that you have already been awarded (april10 til april 11) you can earn another 25k without it affecting your tax credits. when you renew for next year it will be this years earnings that you are assessed on. so unless you earn over the 25k this year everything will stay as it is, but next years will be affected. you need to jiggle about with the calculator to see how it will affect you next year.