Earn £60 per week and they take £57 from tax credit!

DaisyFlower

Rather than thinking thats it unfair, the both of you should look at it thats she still better off a month and the pride factor that its her earning it rather than just taking it from the state/taxpayers.

Tax credits have alreadt been tweaked by the government and I suspect they will go altogether in the next few years.

no-oneknowsme

no-oneknowsme wrote: »

Yeah Sh1305 , i tried to tell her that she shouldnt think of the £16 tax credits that she would be "loosing" but to think of the £16 wages that she would be gaining.

Brick wall and head spring to mind though.....:rotfl:

........

shop-to-drop wrote: »

But she'd still be £16.55 each week better off. You can do a lot with that. It's no different than having to pay tax and NI on overtime really.

Yes shop-to-drop , as you can see I have already said that she would be better off doing the extra hours !

no-oneknowsme

DaisyFlower wrote: »

Rather than thinking thats it unfair, the both of you should look at it thats she still better off a month and the pride factor that its her earning it rather than just taking it from the state/taxpayers.

Tax credits have alreadt been tweaked by the government and I suspect they will go altogether in the next few years.

Daisyflower by both of you I take it you assume that it is me who is not wanting to do any extra hours at work because of the drop in tax credits ????

Read my first post again and then read my subsequent posts.... You will see that I refer to a girl I work with !

You will also see that I advised her to do the extra hour per day as she will still be £16 better off per week !

shop-to-drop

no-oneknowsme wrote: »

........




Yes shop-to-drop , as you can see I have already said that she would be better off doing the extra hours !

You are a good friend advising her in that way rather than just agreeing with her how unfair it is which most would do. If she can work extra hours she would be wise to take them now while they are available as like others have said the tax credits are bound to get less generous as time goes on.

no-oneknowsme

shop-to-drop wrote: »

You are a good friend advising her in that way rather than just agreeing with her how unfair it is which most would do. If she can work extra hours she would be wise to take them now while they are available as like others have said the tax credits are bound to get less generous as time goes on.

I agree. Tax credits have been a wonderful help to a lot of families and i for one find them a massive help but , in saying that ....when people start turning down the chance of some extra work because it may affect their tax credits i just dont agree with that !

People should be trying to find their way into work so that if changes do come into force which changes the system for tc's , the families dont find the change such a shock to their household incomes !

piclelilly

It is not worth your employees while to just work 9 hours in a week. She/he should just get a job with proper hours.[/QUOTE]


this is a proper job, just with few hours. i am looking if i can give her more, she is good at her job and she would like to stay. But we are a very small buisness and we also have to watch the pennies as no help for us at all.

MX5huggy

Piclelilly. In the title you say Tax Credits but in the post you say benefit. I expect it is a combination of the 2, what is she claiming.

If she is claiming Income Support (probably because she is a single parent) or Job Seekers Allowance (you can claim this if you work less than 16 hours per week). She will be losing this money as well as tax credits.

With JSA the 1st £5 is disregarded then you lose £1 for every £1 you earn. I don't know if IS is the same.

Jowo_2

Yes, it's a fact that the harsh taxation/withdrawal of benefits in some circumstances can actually mean an employee is worse off if they work longer or accept a payrise. It is indeed entirely counterproductive to encouraging people to reduce their dependency on benefits.

This is one reason why the current govt have Iain Duncan Smith looking at ways to improve this situation to make people better off working than on benefits and to simply the complexity of the benefit system which currently has around 50 types of allowances, credits and benefits.

PasturesNew

piclelilly wrote: »

can this be right? I employ a partime administrator and she has lost £57.00 from her benefit because she now works 9 hours a week beacause she earns £60.00.
this seems so unfare as she enjoys the job and is going to continue.

what kind of an icentive is this for people to get of their bum and work.
it will be she is worse off as it costs her travel expenses to come to work.

Pay her more then.

gravitytolls

Is she single? If so, at 9 hours per week, she must be claiming other benefits, maybe Income Support? If so, she is only allowed to keep £20 out of any money she earns, is she has a partner who's earning, then tax credits weill be adjusted accordingly.

I presume she's spoken to tax credits?
Has she looked at thed entitledto website?