what happens to wtc and ctc when husband and wife only work 16 hours each

ex-eastender

Hi my husband has just got a part time job (16hrs)
i already have a part time job same hours and i was wondering how this would effect our working tax credtis and child tax credit.
Appreciate any help.x

craig_dufc

Depending on your partners income, you'd now qualify for the 30+ element so WTC may go up.
If your partner didn't work last year, then the award will be based on last years income so your WTC should go up a bit now total hours for you and partner are over 30

may reduce next year due to partner earning though

with both of you working, you'd now also be eligible for help towards CC

joanne_d_3

craig_dufc wrote: »

Depending on your partners income, you'd now qualify for the 30+ element so WTC may go up.
If your partner didn't work last year, then the award will be based on last years income so your WTC should go up a bit now total hours for you and partner are over 30

may reduce next year due to partner earning though

with both of you working, you'd now also be eligible for help towards CC

Craig states that your award will be based on last years earnings and although technically that is correct , i would advise that instead of basing it on last years earnings , you contact the tc office and give them an estimate of what you think your combined earnings for this year will be .

This way , as long as you give them an estimate which is as accurate as you can make it , your payments for the rest of this year will be on track and come renewal time in April 2011 , you wont have an overpayment.......an overpayment is very likely to happen if you base this years award on last years earnings as you were the only person in the household working last year.

Just get on the phone to tax credits (im assuming you have to ring them anyway to tell them that hubby is now earning ?) tell them the fact that hubby has started work 16 hours , tell them that your household income for 2010-2011 will now be £xxxx amount and your payments will be adjusted for this year .

As Craig correctly states your household will now qualify for the 30 hour element as your combined working hours are 32 hrs per week .