Tax help please

pennyshahin_2

Hi I currently work 23 hours a week on the minimum wage which works out at £139 a week and about £7,100 a year .
This is ok for this year because I only started this job in August so am currently well under the pay limit allowed but come the new tax year in april this will be different as I will be earning tax free.
When my boss is off I will probably have to cover his hours and also other workers possibly which by christmas time will probably have taken me over £7,475 mark-and I would then have to start paying tax at 20%-what I would like to know is would I be better of and by roughly how much if I could work the 30 hours a week needed to qualify for tax credits-30 hours on the minimum wage over a year is £9,360 -I believe that I wood pay 20% tax on the £2,260 overthe limit of 7,475 which is about £450 and brings it down to £8,908 + whatever I might get for tax credits.I hope someone understands where I'm coming from and can tell me my best option many thanks

ceeforcat

You are incorrect on a few things.

1) The personal allowance for next tax year is proposed to increase to 8105 and, on your figures, you will pay around £250 in tax in the year.

2) You will not earn tax free until you hit the 8105 figure. The 8105 is averaged out over each pay month.Again, on your figures, you will pay around £20 per month in tax.

Seven years ago I used to lecture on tax credits - now I must admit that I have no idea about this ever changing area.

pennyshahin_2

Thanks I thought that I could earn upto that amount before I was taxed.

mildred1978

pennyshahin wrote: »

Thanks I thought that I could earn upto that amount before I was taxed.

You thought wrong.

xylophone

Suggest you read this http://www.direct.gov.uk/en/MoneyTaxAndBenefits/index.htm