tax credits and overtime

fkelanne

hiya all, im just wondering if any one would know if i am better off working 30 hours a week rather than 16?

dave030445

yes your get 14 hours more pay

HappyMJ

I thought it was a well known fact that the fewer hours one worked the better off one would be. I think the whole of the full time workforce must be crazy.

Murgatroyd21

For tax credit purposes there's an additional 30hr element entitlement equal to £790 for the year. Obviously any calculation takes in to account your annual income details depending on which year from current year and previous year gives the lower figure.

If you started 30hrs from today your current year income may be higher than last year's if you only usually worked 16, so last years income will be used to make the calculation but you will have the 30hr element added from today so an additional daily amount of £790 / 365 = £2.16 x 198 days between today and 05/04/2011 = £428.55 additional element this year. Next year, when you are due to work 30hrs for the full year means this year is likely to be the lower income, so would be used for next years calculation but with the additional 30hr element added for the whole year.