Help understanding tax credits etc

Pammi_J

Hi
hope someone can help.
I currently work full time, i get child tax credit and working tax credit plus a little bit of hb.

I have been offered a part time job, which would suit better as i am a single parent so i would save on childcare along with parking and petrol (as the part time job would be something i wouldnt need my car for)

My current income is £12000.00 a year. The job i have been offered is approx £5200 a year. (sounds a big drop but taking parking, petrol and cc into consideration, it works out the same in income)

Okay, so my question is, how do tax credits work, if you take a drop in income? Calculation for 2011/12 tax credit would be - 2010/11 earnings of £12000.00 - but if my current 2011 income is going to be lower, ie £5200, would they take that into account when my renewal is put in?

Iv tried to run it all through entitled to, but i cant work it all out!

any help would be appreciated thankyou

zagfles

They'll base it your expected income next tax year if you ring and tell them. Are you still working 16 hours (if not you won't get WTC).