Working Tax Creds - How much can you earn to qualify?

sally0101

Hi ... what is the maximum I can earn before deductions to qualify for working tax credits? I currently earn about £13,600 and have been advised this is too much. This is based on

Single person living alone
No children
Earning £13600 working 37.5 hrs

I thought you could earn up to £15000. Am I wrong? Many thanks in advance for advice

Murgatroyd21

It's about £13300 to get the minimum 1-off pyt of £26.

dave_ave

To get a definitive answer, by inputting your specific circumstances, go to:

www.turn2us.org.uk

The site will tell you exactly what benefits, including tax credits, you are entitled to.

baza52

Working Tax Credit (WTC) is for people who are employed or self employed (either on their own or in a business partnership), who

• get paid for their work
• expect to go on working for at least 4 weeks
and who are either
• aged 16 or over and responsible for at least one child, and usually working at least 16 hours a week, or
• aged 16 or over and disabled, and usually working at least 16 hours a week, or
• aged 50 or over and are starting work after receiving certain benefits for at least 6 months and usually working at least 16 hours a week, or
• aged 25 or over and usually working at least 30 hours a week.

DX2

Your total income is more than £13,300 a year, you probably don’t qualify for tax credits.

http://www.hmrc.gov.uk/tools/taxcredits_qualify/question01.htm

Person_one

Sorry to thread-jack, but its a related question!

How much do your earnings have to go up for you to declare it to tax credits? The online HMRC form asked if I expected this year's earnings to be either less, or 20k more, than last years.

Does that mean I could get a 19K pay rise and not have to tell tax credits?

(I'm not in line for a 19k pay rise btw, but it might not be too long before I have a slight increase that takes me just over £13,300)

Murgatroyd21

Person_one wrote: »

Sorry to thread-jack, but its a related question!

How much do your earnings have to go up for you to declare it to tax credits? The online HMRC form asked if I expected this year's earnings to be either less, or 20k more, than last years.

Does that mean I could get a 19K pay rise and not have to tell tax credits?

(I'm not in line for a 19k pay rise btw, but it might not be too long before I have a slight increase that takes me just over £13,300)

If you had a salary from last tax year of 13500, but find this year you are set to earn 38500, you will still get tax credits based on the previous year income and won't be overpaid so don't need to update before you do the end of year declaration. Even if you got £39000, you would only be overpaid on £500 due to the £25000 disregard.

Problems are more often caused by people repeatedly reporting income changes in the year creating new award calculations without understanding the impact of these changes.