will my child tax credits go up if i cut my hours

jamesey

hi last year i was earning £35k and my wife earnt £2k for the year 2009 to 2010 , we got £135 child benifits for the 2 children we have got and £138 child tax credits a month.
now ive swapped my job to look after my wife (epilepsy) im now on £22k and my wife has earnt £2.5k this term 2010 to 2011 , the tax office has worked out we will only be getting £139 child tax credits even thou im over 10k down from last years wages , i do a 39hr week and my wife does 16hrs shes self employed as a cleaner and cant do too much due to her eppilepsy , we have been on dla high rate care low rate mobility at £360 a month now shes had the lot took off her even thou shes worse than last year life just sucks doesnt it.
anyway my question is if my wife did lets say 10 hrs a week would her child tax credits go up or down because they seem to work these things backwards , with her dla we would get about £400 a month child tax credits but now thats stopped she would only get £139 , im sorry for babbling im just worried i want to afford nice things for the kids not to be scrimping ect:(

compoff

Tbh, it would make very little difference. You earn £24.5k between you both and receive about £3.5k per year from child benefit and tax credits, so I don't think you are that badly off. There are plenty of nice things for kids which don't cost a fortune, plenty of people in your position.

DaisyChainMaker

Tax credits are based on your previous (tax years) earnings, so they would probably stay around the same for this current tax year.

kst101

Because you and your wife are a couple you have a joint claim, so there is no concept of "your" tax credits and "her" tax credits.

Tax credits are generally based on last year's earnings but if there is going to be a significant change they can be based on this years. I can't remember where the general thresholds are (remember they will be different depending on number of children, childcare costs, disabilities) but at £25k you won't be getting a vast amount. Amount of hours won't make a difference - if you cut down you may get a bit more tax credits but to find out more accurate figures look at an online checker.