Increase in working hours & pay!

mrsspendalot

Hi

Just wanting some advice in advance of some changes to my working hours and income.

I have just been informed at work that I can go full time from 1st August, and also that I have a pay rise!

At present I work 18.5 hours, and as I am earning so little I currently receive housing benefit, council tax benefit, working tax credit and child tax credit for my 3 children.

My annual income is going to rise from 1st August from just over £7000 to the equivalent of £15,827 a year (although I won't earn all that this year with it being part of a year - have worked it out to be approx £13,000). Of course, from that I will pay tax, NI, and pension contributions at 5.8%

What I want to know is what effect the pay rise will have on tax credits mid-year. Will I end up oweing them back all the WTC I've had so far based on my lower income? Or will they stop what I'm due to get for the rest of the year to make up for it? I just need to know what my financial position is going to be from August so I can forward plan!

Also, does anyone know how the taper works with housing & council tax benefit? I have no problem with being no better off overall for earning the money rather than claiming it (hence taking the better paid job and increasing my hours), but I would hate to think I would end up worse off overall! Do they just reduce it penny for penny until it reduces to £0? Or is there a cut off like WTC of a certain household income?

Thanks in advance!

andyandflo

Hi just go onto the HMRC website, entitledto.com & your local authority website - these will show what will happen to your benefits/income. I did exactly that when I thought about reducing my working hours. Because I also get DLA min mobility rate, the Tax Credits treated me as being in full time employment over 16 hours - not over 30. And when I took out all of the costs of going to work for 5 days instead of 2, I was no worse off financially. In other words I was working for 3 days a week for nothing - ummm was I mad!! Actually I left work altogther and now receive £235 pw Pension Credit, no council tax (£150 pm) and they pay my mortgage interest of £400 pm. Approx. £362pw - equivalent to a net annual income of £18,824 after tax and national insurance deductions!!!

It doesn't pay to work!!!!

You may be surprised just how little well off you will be by doubling your hours

Wee_Willy_Harris

Might be wiser, if you can, to hold off any decision until after the budget this month.