Help - Tax Credits Advice please

emhal

Hi

I am seriously thinking about reducing my hours when my daughter starts school in september, I know there is going to be a cut in my wages as I will be going from 37hrs per week to 30hrs per week. I have heard that tax credits will only pay figures based on the previous years earnings - is this correct? My salary will drop by about 4k a year but obviously changing my hours half way through the year I will have half full time and half at reduced?

Will tax credits take into consideration that my salary will be dropping?

any advice would be much appreciated!

themonkeybutler

Give them a call with your new income for this year, and the relevant adjustments will be made to your award. If you dont give an update on your income, then your claim will be based on the previous year until you finalise it after april 2011 when you may, or may not, get a back payment. If you can live quite happily on your new income and TC this year, I would do it. That way, come next year you may get a nice little lump sum to spend on a holiday or something!

emhal

Thank you for replying so quickly - definatley something to think about