This can't be right... Can it?

minicazzybee

Hi there,
Hoping I can get a little help here as have had a very strange conversation with Working Tax Credit people this afternoon.

At the moment I'm currently working 25 hours a week as a single mum and get around £700 working tax credit every 4 weeks which is based on £10,750 salary and £439 per month childcare costs....


I've just been offered extra hours at work which would mean I'd be earning £13800 a year, and my childcare costs would increase to £580 pcm. I rang WTC to see if it was viable to accept the extra hours and not forfeit a lot of tax benefits and based on the information I gave them, they said if I took the extra hours they reckon I'd get £189 per week, which is considerably more than I'm getting now.

I'd asummed my WTC would reduce if my income increased, so am very suprised to hear of this. I have been on the website and it states that any change of circumstance will have an effect on WTC but doesnt say how it will effect it.

Can anyone advise if this has happened to them, and why the amount has increased. I have a sneaky suspicion I spoke to someone who didnt have a clue and don't want to accept the job offer based on false information.

Many thanks! xxxx

wombles_forever

May be that you would qualify for the 30hr element as well.

Oldernotwiser

Tax credits aren't my thing but it looks as if they've gone up to match your increased child care costs.

MsShorty

Also, your increase in salary should not reduce your tax credit entitlement for this tax year, but you may find that they drop in April 2012, when you renew.

zagfles

It looks about right, and that's even taking into account the reduction due to increased income which, as MsShorty said, won't apply till next year. So it should be even more this year!

You'll get extra childcare - 70% of the increased amount so 141*0.7*12
You'll get the 30hr element assuming your hours go over 30, so 790
Total gain 1974 this year ie about £38pw

Next year the income reduction will apply: 41% of 3050 = 1250 ie 24pw, so net increase next year £14pw which is exactly what you were told!

You can double check on the turn2us calculator https://www.turn2us.entitledto.co.uk/entitlementcalculator.aspx

minicazzybee

Thanks to all of you for your replies. I'd just assumed that more money=less benefits. Will give them a buzz at some point tomorrow (when I've got 45 minutes spare to be kept on hold) for a 2nd opinion just to be on the safe side xxx

pinksorrell

I had the same thing a few weeks ago when I got a second job which brought my hours from 16 per week to over 38. Like you, I thought originally that my tax credits would have gone down but was assured by a tc phone operator that they would go up. I was going to call them to double check until I read your post!

jetta_wales

MsShorty wrote: »

Also, your increase in salary should not reduce your tax credit entitlement for this tax year, but you may find that they drop in April 2012, when you renew.

I agree this is likely to be the case so you should bare it in mind and not be too du fixed if you get a drop from next April.