Tax credits and reducing working hours?

caz246

I am considering reducing my hours in work by 7 per week meaning I would work 30 hpw.

My salary would decrase by around £3500. I have a aprtner who works 30+ hours and we pay full time childcare. We received some tax credits this financial year due to him being out of work most of last year and me being on maternity leave.

If I did do this and inform TC would my tax credits increase this year? Or would they remain the same?

Thanks in advance

themull1

Will your child care hours reduce?

caz246

No unfortunately not due to the way the pricing goes for the full day, I'll be taking my son out of nursery 1 hour earlier yet still need to pay the full days fees

caz246

Any tax credits experts any idea? I ideally want to request a reduction in my hours tomorrow before I go on annual leave next week so just want to clarify my tax credit situation before I make the final decision, as I don't trust the answer I'd receive if I called them direct.

caz246

gregbythesea wrote: »

My son hasn't done his renewal yet! Too lazy by far. His payment for WTC should be next week, but unless he gets a spurt on he won't see anything this side of the end of September - and no I'm not lending either.

If he's not did his renewal it's highly unlikely he'll receive a payment next week!

Icequeen99

caz246 wrote: »

I am considering reducing my hours in work by 7 per week meaning I would work 30 hpw.

My salary would decrase by around £3500. I have a aprtner who works 30+ hours and we pay full time childcare. We received some tax credits this financial year due to him being out of work most of last year and me being on maternity leave.

If I did do this and inform TC would my tax credits increase this year? Or would they remain the same?

Thanks in advance

What was your 11/12 income and what do you estimate your total 12/13 income (for both of you) if you don't decrease hours. if you can give both figures then I can tell you how the decrease in income will impact.

IQ

caz246

Icequeen99 wrote: »

What was your 11/12 income and what do you estimate your total 12/13 income (for both of you) if you don't decrease hours. if you can give both figures then I can tell you how the decrease in income will impact.

IQ

2010/11 joint income was approx £32000
2011/12 income approx £9000 (already deducted 37 weeks at £100 for maternity. I was on maternity leave and partner out of work nearly the full tax year)
2012/2013 income approx £33000, this would reduce to approx £30000 if I reduced my hours.

Our childcare is £820 per month (we have one child). At the moment we get around £575 tax credits purely because our income was so low last year, we will get next to nothing next year I am fully aware of this. Some of this is part of an underpayment from last year which they are spreading throughout the year.

These are all approx figures from the top of my head, I have all my paperwork if more accurate ones are needed.

Much appreciated

MrsE_2

caz246 wrote: »

I am considering reducing my hours in work by 7 per week meaning I would work 30 hpw.

My salary would decrase by around £3500. I have a aprtner who works 30+ hours and we pay full time childcare. We received some tax credits this financial year due to him being out of work most of last year and me being on maternity leave.

If I did do this and inform TC would my tax credits increase this year? Or would they remain the same?

Thanks in advance

So basically you want to drop from part time to eve
Less part time work & want to know if us full time workers who pay full taxes will make up the shortfall?

princessdon

MrsE wrote: »

So basically you want to drop from part time to eve
Less part time work & want to know if us full time workers who pay full taxes will make up the shortfall?

Lets be fair here, 37 to 30 hours - plus another adult working FT is hardly less part time. They also have very young children.

paddedjohn

MrsE wrote: »

So basically you want to drop from part time to eve
Less part time work & want to know if us full time workers who pay full taxes will make up the shortfall?

The OP is dropping from 37hrs to 30hrs, not really part time but i see why you are asking.

repeatoffender

Will you not have to repay the 575 anyway as don't the rules say you can only earn 10k more before they take the money back. I'm no expert tho I know childcare is expensive but I'm sure if you ask users on here they could help you save the 575 on other things over the year.