Some advice please (which probably has been given before). Sorry!

Homeagain

Hi all,
At this stage I am working 27.5 hours per week. I have been offered a further four hours which will bring me to over 30 hours. It is really for very little extra (about 28.00 pounds) but in any event I understand that if I work over 30 hours per week my WTC will be reduced. Is this correct? I am a widow with a 15 year old daughter and I earn about 7.00 an hour, hence am on a 'low income'.
Thank you for any advice.

BigAunty

You can model this scenario in the Turn2us online benefit calculator and it will show you the difference. Not sure there is a 30 hours trigger per se, the calculation will be sensitive to income. Lone parents with dependents are only required to work 16 hours to qualify for WTC anyhow.

Dunroamin

Nicolafine wrote: »

Hi all,
At this stage I am working 27.5 hours per week. I have been offered a further four hours which will bring me to over 30 hours. It is really for very little extra (about 28.00 pounds) but in any event I understand that if I work over 30 hours per week my WTC will be reduced. Is this correct? I am a widow with a 15 year old daughter and I earn about 7.00 an hour, hence am on a 'low income'.
Thank you for any advice.

Don't forget that it won't be long until you have to be working a minimum of 30 hours to be getting any tax credits. I'd take a longer term view of the situation.

Pedent

The 30-hour threshold is to do with an extra element that you qualify for if you work enough hours. By increasing your hours, you'll increase your base entitlement by £790/year.

Because of your income going up by ~£1450/year, you'll also see your reduction due to income increase by just under £600/year, so your tax credit award will only go up by just over £190/year.

So overall you should be better off by just over £190 in tax credits, plus the increase in your net pay (probably about ~£1000).

That's in the long-term though. Because there are part-years involved, the calculations will be more complicated. Also, the increases in your earnings will be disregarded in the first year they occur, meaning you'll initially get to keep more of your tax credit award than the above figures suggest.

Basically, it's all good: take the extra hours.

Homeagain

Thank you all for your replies and help. I will definitely go for it. Strangely enough, I have been offered (and accepted) a further hour today making the increase of 1 1/2 hours a week. I actually misunderstood the offer as being 4 hours a week, it was in fact 1 hour a week but now works out to 2 1/2, which as you have all explained is fine and will bring me up to 30 hours anyway. Strange how things work out, I was wondering how to make some extra money to keep the wolf or rather wolves from the door! Thank you once again.