Help With Tax Credits PLEASE !!

KeKeDyl

HI, i just wondered if you good people could help me. My Partner works full time makes roughly £21,200 a year, i worked 5 hours a week making £1560 a year, we have 2 children aged 10 and 6 and we receive £70.47 a week in tax credits. I've the opportunity of a new job working 16 hours a week making £394.88 a week, so roughly £4738.56 a year, how will this affect our tax credits? I want to know if i'm making the right decision taking the job, i believe i will be better off,but would just like some advice. Thank you very much for your time and help.

skibadee

try the entitledto.com website

zagfles

Assuming you don't need childcare and not claiming other benefits like HB etc, you'll be considerably better off if you take the job. Tax credits will reduce by 41% max of your gross income increase but you're not earning enough to pay tax or NI so that'll be it. You'll keep 59% of the increased income.

Also it probably won't affect them this year as there's a £10k disregard for income increases. And next year your tax credits won't drop by the full amount of your income increase, because your annual income this tax year will only contain 4 months or so of your new wage.