getting tax credits but hubby isnt being taxed in his wages

spartacusthe1st

hi hubby started work end of august he hasnt been taxed yet on his wages!i rang up tax credits to inform them he was working and his hours,pay etc but im worried we r gonna have to pay most of it back as he hasnt been taxed yet?
on his payslip it says taxable gross 3449 is this the amount he can earn b4 getting taxed?
gonna ring tax credits tomoz but any advice appreciated!

karenx

Tax credits arent payable for the tax you end up paying through working. Its an add on. Just goes on what the joint income is

spartacusthe1st

thanks. so our tax credits arent sort of payments back from the tax we paid then?

Valli

Most people are taxed through the PAYE system and have a tax code which is a 3 digit number and a letter.

It's a good idea to be familiar with how pay is calculated and what deductions are made, then you know if the pay/tax/NI etc is correct.

THIS link is useful

Adereterial

He may not be taxed if he didn't work between April and August - your tax free allowance is effectively divided into 12 chunks and if he wasn't earning then he'll overpay if he's taxed straight away.

This happened to my OH - unemployed for nearly 2 years due to illness and then when he got a job, wasn't taxed for the first few months until he's earned enough for it to kick in properly. Tax office confirmed all was well when he rang - they're very helpful, if you're concerned give them a call and they'll make sure everything is as it should be. If it's not they'll make changes over the phone and get things sorted out. If he owes money, he'll have to pay it back but they won't deduct it from your tax credits.

MissMoneypenny

karenx wrote: »

Tax credits arent payable for the tax you end up paying through working. Its an add on. Just goes on what the joint income is

Tax credits are an income based welfare payment. Claiments apply for it every year.

The name is confusing as it has nothing to do with paying tax.

melly1980

spartacusthe1st wrote: »

thanks. so our tax credits arent sort of payments back from the tax we paid then?

think of it like this.

Its a welfare payment but given a jazzy name so that those who get it can claim that they are not on benefits. Not so much a problem in itself but it does create a pecking order within the system. At the bottom we have immigrants, then the JSA'ers, then the disability lot then above that you have the tax credits people who sneer at all those below them despite getting freebies too.

spartacusthe1st

Adereterial wrote: »

He may not be taxed if he didn't work between April and August - your tax free allowance is effectively divided into 12 chunks and if he wasn't earning then he'll overpay if he's taxed straight away.

This happened to my OH - unemployed for nearly 2 years due to illness and then when he got a job, wasn't taxed for the first few months until he's earned enough for it to kick in properly. Tax office confirmed all was well when he rang - they're very helpful, if you're concerned give them a call and they'll make sure everything is as it should be. If it's not they'll make changes over the phone and get things sorted out. If he owes money, he'll have to pay it back but they won't deduct it from your tax credits.

thanks hubby in same situation he was made redundant in march then he just started working again in august. oh good its put my mind at ease.

thanls everyone

MissMoneypenny

melly1980 wrote: »

think of it like this.

Its a welfare payment but given a jazzy name so that those who get it can claim that they are not on benefits. Not so much a problem in itself but it does create a pecking order within the system. At the bottom we have immigrants, then the JSA'ers, then the disability lot then above that you have the tax credits people who sneer at all those below them despite getting freebies too.

Which is a strange thing to do as Tax Credits are the only one of those benefits you have mentioned, that is just based soley on income. Therefore Tax Credits benefits are just for those who can't keep themselves or their family.

JSA and Disabilty can be based on income or on their contributions to the welfare state. Immigrants: EU immigrants can legally claim welfare as soon as they arrive, just as some non-EUs can too through their British or EU partner. Other non-EU immigrants are not allowed to legally claim income based welfare, for 5 years.