how does a second income effect tax credits

applejack1pie

just a bit confused by the tax credits system regarding second income .

my hubby works 40+ hrs a week and is the breadwinner and has earnt 12000 employed and approx 4000 profit from self employment, and we have 4 dependant kids. but this xmas i took on temp work and earned 2900 working under 16hrs a week . i always thought that you were allowed to have a second income that dosnt affect tax credits as long as its under 16 hrs. but they have included this in our total income figure and deducted us 2000 on out tax credits any info please would be great

JC9297

I have never heard of a second income being disregarded, I can't imagine just because it was under 16 hours it wouldn't count (you could potentially earn loads in some jobs and just work less than 16 hours to avoid it counting if that was the case). Perhaps you are confusing the fact that one of you must be working over 16 hours to qualify. As far as I know the total family income is what the award is based on.

karenx

Why would it not be included? Anything you earn from jobs is included. So no there isnt anything you can do with regards to the tax credits lower amounts

nannytone_2

i think the op is confusing the need to work over 16 hours to be able to claim.

TaxCreditHelp

Earnings frrm employment for someone working less than 16 hours per week are only disregarded if the partner of the person has been on either Income Support, Pension Credit, Income Based Employment Support Allowance, or Income Based JobSeekers Allowance.

In all other circumstances income from employment should always be included.