Tax credits confusion

Kamikaze_Bob

Myself and my girlfriend have a 5 month old girl. Her maternity is about to end, and she's about to have a meeting with her boss about possibly returning to work part time. We just renewed our tax credits, based on my girlfriend not going back to work, as it is very unlikely they will let her go back with hours to suit us.

However, if they do go for it, she would be working 16 hours a week or thereabouts. I work 35 per week. What I can't get my head around is whether or not her going back to work part time would affect the TC or not.

There's a bit on their site about changes in hours between 16 and 30 hours, but as we claim as a couple, it also says "for couples with children it is your joint working hours that count towards the 30 hours - one of you must work 16 hours or more a week". This is the bit I don't get.

Can anyone explain this in plain English?

karenx

Yes any income is taken into account. So with you both working over 16 hours each you may qualify for help with childcare. If your joint income is above 18k then you won't get working tax credits

Kamikaze_Bob

If she goes back to work, it'll be nights or weekends to fit around my hours, which are fixed. We don't want to put our wee girl into childcare, and my mum and dad (only ones we can realistically leave her with) can't guarantee to be available during the day because they work different shifts every week.

Good thing is tho, she was on great wages before mat leave, and even 40% or so of her wage (pro-rata for 16 hours or so) will give us a good amount. Only thing is her work are doubtful to go for it.

Thanks for the explanation. Shows its a government operation when they make it as hard as possible for you to understand.

edit: What if she goes back to work less than 16 hours? Might not be with her current employer, but something for extra cash. Would this still affect it?

karenx

Yes any income is taken into account, and if that still takes you over the 18k then you still wont get WTC.
Doesnt matter how little or how much hours she works the incomes is still counted

Kamikaze_Bob

Thanks for that.