Tax Credits New Income and Overtime

einalem

Last tax year our income was only about £4000 as we both were students and husband only worked a bit around uni so we got CTC no WTC.

In sept we told tax credits he is working as he left uni so now works full-time and they have given us the appropriate tax creditsWTC as well as the CTC we already got.

In the run up to xmas there is overtime available. On the phone the tax credit lady said to tell them if income change above/below £300. Does this include overtime?
I keep hearing about an income diregard but not sure if that counts as our income has gone up from last year?

Also if the overtime does affect tax credits will it take the money away pound for pound or at a set amount?

Just want to know as really don't want an overpayment to pay back as will be a bit worse off next year(I will work as finished uni he will be stay at home dad) so don't want to have something to pay back
Thanks

LL30

There's a 10K disregard so as long as he doesn't earn over 14K this tax year, you're ok. If he does, you only have an overpayment on anything above 14K, not the whole amount - there's some maths involved, something to do with 41% I think, but I'm nigh on useless when it comes to things like that unfortunately!

zagfles

LL30 wrote: »

There's a 10K disregard so as long as he doesn't earn over 14K this tax year, you're ok. If he does, you only have an overpayment on anything above 14K, not the whole amount - there's some maths involved, something to do with 41% I think, but I'm nigh on useless when it comes to things like that unfortunately!

Well that's a very good answer from someone who thinks they're "nigh on useless":) Yes it's 41% of anything over the disregard.

Best to tell them anyway even you don't over the disregard, so they get next year's payments right.

einalem

It's a bit weird as next year he will stop work at the end of july and I won't be eligable for tax credits as I will earn too much(so nice to be able to say that as this is my 6th year of uni and really want to be back to world of work and earning!)
He is minimum wage so that means he can earn 2.5k(won't earn that tho! lol) extra before it will be affected which is good to know
:-) thanks for advice

LL30

zagfles wrote: »

Well that's a very good answer from someone who thinks they're "nigh on useless":) Yes it's 41% of anything over the disregard.

Best to tell them anyway even you don't over the disregard, so they get next year's payments right.

Why thank you (my maths is shocking! Ask me to try and work it out in real terms and you'll see me running for the hills!)