Tax Credits & working hours question!

seabreeze96

Hi, how would my tax credits payment change from my old job of working 15 hours per week to working 21 hours per week but at a slightly less wage? Would my payment go up or down?

Hammyman

They may go up slightly but you're well short of the 30hrs required for the fulltime supplement however AFAIR that's only worth £500 a year.

DX2

seabreeze96 wrote: »

Hi, how would my tax credits payment change from my old job of working 15 hours per week to working 21 hours per week but at a slightly less wage? Would my payment go up or down?

How did you manage to get tax credits in the first place if you only worked 15 per week?

Murgatroyd21

You need to give a more complete picture of your circumstances. If you were already (as implied) in receipt of ctc and you increase hours above 16 you qualify for the 16-29 hour element of wtc. If you are a single parent, you could also qualify for help with childcare costs now. You could get an additional £73pw made up from basic wtc £1920 + single/couple element £1890 = £3810 / 52 = £73pw.

seabreeze96

DX2 wrote: »

How did you manage to get tax credits in the first place if you only worked 15 per week?

Because I claim tax credits with my husband who works full time, so it will still be a joint claim - sorry forgot to mention this in my original post.

I was just wondering whether it goes in your favour with tax credits if you work more hours for slightly less money in another job?

seabreeze96

Murgatroyd21 wrote: »

You need to give a more complete picture of your circumstances. If you were already (as implied) in receipt of ctc and you increase hours above 16 you qualify for the 16-29 hour element of wtc. If you are a single parent, you could also qualify for help with childcare costs now. You could get an additional £73pw made up from basic wtc £1920 + single/couple element £1890 = £3810 / 52 = £73pw.

Thanks for that - I claim tax credits jointly with my husband (who works full time). In my previous job I worked 15 hours per week and in my new job I will work 21 hours for slightly less pay. I was wondering whether the tax credit payments would go up or down.

Murgatroyd21

seabreeze96 wrote: »

Thanks for that - I claim tax credits jointly with my husband (who works full time). In my previous job I worked 15 hours per week and in my new job I will work 21 hours for slightly less pay. I was wondering whether the tax credit payments would go up or down.

There won't be any change in entitlement then as there is no change to the wtc entitlement. You could potentially have a slight increase in wtc due to the change in current year income, but if you reduce your figures and get it wrong you could be overpaid instead. Personally I'd leave it till you give P60 details at the end of the year and get any underpayment made once the claim is finalised following completion of your annual declaration.

seabreeze96

Murgatroyd21 wrote: »

There won't be any change in entitlement then as there is no change to the wtc entitlement. You could potentially have a slight increase in wtc due to the change in current year income, but if you reduce your figures and get it wrong you could be overpaid instead. Personally I'd leave it till you give P60 details at the end of the year and get any underpayment made once the claim is finalised following completion of your annual declaration.

Many thanks - it would be nice to have a bit more coming in - as long as the payments don't go down, having to work more hours to get slightly less money and then have less tax credit paid would NOT make me a happy bunny!