reduction in hours issue!

banner188 · 15 July 2012 at 1:01AM

Hi. I have a problem on the horizon. I am married and OH is a stay at home mum. I work 35 hours but my employer is lowering my hours to 23 hours, below the new couple's threshold. Employer says there will be overtime available most weeks though.
I was wondering what I should do?
Do I tell tax credits my new 23 hours or can I give an estimate of higher than 24 hours with overtime so that we keep WTC?
Also, with the new 2500 disregard, can you do overtime to make up the loss in credits until the start of the next tax year?

Best solution will be OH finding work but not an option at the moment with a young baby.

LizzieS_2 · 15 July 2012 at 1:34AM

Tax credits can check your hours with your employer at any time. To obey the law you should inform them every time your hours actually worked go above or below 24. You also have to inform them of changes where hours go above or below 30 hours as there is another element to your award for that.

£2500 disregard means they ignore the first £2500 drop in income. They will also ignore the first £5000 increase in income by the start of next tax year and £2500 increase each year after that.

There are 168 hours in a week. If you need the money and certainty over tax credits you should not rule out your wife working. Women can legally work at any time after a baby is 2 weeks old.

allen35 · 15 July 2012 at 1:46AM

If there's going to be overtime most weeks, can't you discuss with your employer the importance of having 24 hours.

Due to not meeting the 30 hour rule you need to inform HMRC of the COC.

You maybe able to average your hours over a month so for instance 23 hours for 3 weeks, 28 hours on week 4 in the cycle would average out at just over 24 hours per week.

Your initial award is based on 2011/12 tax year but you can give an estimate of current income.

If taking this route try to be as accurate as possible to avoid an overpayment or if you can manage you can stay on your current award and when you give your declaration next year you will receive any underpayment as a lump sum.

Do you rent, if so you may be entitled to Housing benefit/council tax benefit based on your lower income.

Another option to consider if renting is leave your tax credits as they are based on higher income from 11/12, this will increase possible Housing benefit as it is based on household income and receive a lump sum after the next tax year or inform HMRC of reduced estimated income to increase tax credits but this would affect possible lower entitlement to HB/CTB.

You need a benefit check based on both scenario's to to arrive at what's best for your household.

grummps · 15 July 2012 at 8:30AM

LizzieS wrote: »

Women can legally work at any time after a baby is 2 weeks old.

I'm not disputing what the legal position is, but come on, and I'm a guy, the idea of making a woman go out to work with a baby of that tender age is nothing more than disgusting.

Were on earth are we heading for in this country?

No mum with a child under 5 should even be thought of as being ready for work unless she actually wants to. After age 5, yes mum could do a part time job as long as it fitted in with the school hours.

Call me old fashioned, but a child, before they go to school, needs their mum to be around and not some childminder or faceless nursery.

Me personally, I would register as self employed with HMRC, and work doing anything in order to make up the 24/30 hours a week.

annie1975_2 · 15 July 2012 at 8:40AM

grummps wrote: »

I'm not disputing what the legal position is, but come on, and I'm a guy, the idea of making a woman go out to work with a baby of that tender age is nothing more than disgusting.

Were on earth are we heading for in this country?

No mum with a child under 5 should even be thought of as being ready for work unless she actually wants to. After age 5, yes mum could do a part time job as long as it fitted in with the school hours.

Call me old fashioned, but a child, before they go to school, needs their mum to be around and not some childminder or faceless nursery.

Me personally, I would register as self employed with HMRC, and work doing anything in order to make up the 24/30 hours a week.

I agree whole heartedly,mum should be with baby.

Mara69 · 15 July 2012 at 8:49AM

annie1975 wrote: »

I agree whole heartedly,mum should be with baby.

In an ideal world, yes. However, if Dad cannot provide for Mum and baby, then Mum should go to work as well as opposed to expecting the taxpayer to top up their income.

annie1975_2 · 15 July 2012 at 8:54AM

Tax payers are topping up incomes on people who dont really need it,or people who have paid nothing in to the system and getting all sorts.
I think its time we started looking after the likes of Banner 188 and the likes.

antrobus · 15 July 2012 at 9:27AM

grummps wrote: »

...Call me old fashioned, ....

Old fashioned? You're positively prehistoric.:)

princessdon · 15 July 2012 at 9:34AM

antrobus wrote: »

Old fashioned? You're positively prehistoric.:)

And clearly uneducated in this regard too! Have you seen the research into families whose children spent some quality 1:1 time with their FATHER! Ie mum works for 4 hours a week (maybe a shift in the local), baby and father bond, they get their Tax Credits.

Op is your wife on maternity leave if the child is a baby - because I am sure those hours count.

Otherwise 1 or the other of you need to get additional work, sorry but it is totally unrealistic to expect me (and the tax payers) to support you on 23 hours a week between 2 adults. I know this is new to you (and this isn't a choice you made and not your fault) but the answer is to either get you boss to agree 24 hours basic or look for work (it may be easier for your wife to do this as your OT is sporadic).

banner188 · 15 July 2012 at 10:57AM

princessdon wrote: »

And clearly uneducated in this regard too! Have you seen the research into families whose children spent some quality 1:1 time with their FATHER! Ie mum works for 4 hours a week (maybe a shift in the local), baby and father bond, they get their Tax Credits.

Op is your wife on maternity leave if the child is a baby - because I am sure those hours count.

Otherwise 1 or the other of you need to get additional work, sorry but it is totally unrealistic to expect me (and the tax payers) to support you on 23 hours a week between 2 adults. I know this is new to you (and this isn't a choice you made and not your fault) but the answer is to either get you boss to agree 24 hours basic or look for work (it may be easier for your wife to do this as your OT is sporadic).

I understand where you and other posters are coming from with these views but I am only trying to find a solution within the rules of the system. I am surrounded by non working families and people on ESA and DLA who seem to just sit pretty with the same lifestyle as us, it is very frustrating.

I just need a practical solution for the time being until I can get another job or OH gets a job.

It says on HMRC site that I can include regular overtime as my weekly hours, but these wouldn't be contracted so I'm confused as to how many I can say to HMRC.