Single mum offered job promotion looking for help working tax credit and housing bene

HardToHandle

Hi,

I have been offered a promotion into a managerial position at work to cover maternity leave. It's a role that I held in the past but left due to having a daughter and being unable to commit full time. Fast forward three years dd is now in nursery (15 allocated hours free) and my boss is expecting. I have been offered the job as assistant manageress :j it is only 7.5 hours per week on top of the 22.5 hours that I currently do (bar staff). I will only be paid managers rate (£9.24) for 7.5 hrs per week and minimum wage the rest.
Childcare is and always has been within the family and therefor free!!

Questions are;

1. Will I be eligible for housing benefit alongside my 30 hours element wtc?
If not, by my calculations I will appear to only earn £20 extra per week for a whole load more work!! I want to work but my other option is to go back into education and feel that to not get the extra £20 will be a good compromise if I get an education.

2. Do people actually end up worse off for working more hours/better jobs?
If so, it's not fair. I will opt for education.

3. What would you do??
I'm confused, it's a lovely job and maybe £20 per week isn't too shoddy.

My last p60 showed earnings of £5688. My hours have already increased and my last wage slip shows total gross earning of £7157 so far. This is set to increase to around £12.500 in the next (2014/2015) tax year but then will drop again in the following year.

4. Will I see a huge loss in wage+ wtc the following year?

So confused!! Please help... Many thanks in anticipation.

Finally I am a single parent, renting from private landlord.

BigAunty

HardToHandle wrote: »

2. Do people actually end up worse off for working more hours/better jobs?
If so, it's not fair. I will opt for education.

.

Yes, yours is probably a classic example of the benefit trap whereby some households, including lone parents, don't get to see much return for any extra hours or income in employment.

It's a quirk that has come about because of generous in-work benefits that top-up certain households income and has eroded the distinction in disposable income between workless and working households. This is compounded by low wages and high rents.

It is well known that the steep withdrawal of benefits and entry into taxation (plus for some people, travel to work and child care costs) mean that certain benefit recipients are either no better off or only a tiny bit better off from increasing their hours/income.

This is probably why there is around 200,000 2 parent households where only one parent works part time, why a large percentage of lone parents are in part time employment and so forth.

Personally, I don't like the way your employer has decided that only a third of your working time can be rated as a management role - how is this schism supposed to work? They just sound tight to me.

HardToHandle

BigAunty wrote: »

Yes, yours is probably a classic example of the benefit trap whereby some households, including lone parents, don't get to see much return for any extra hours or income in employment.

It's a quirk that has come about because of generous in-work benefits that top-up certain households income and has eroded the distinction in disposable income between workless and working households. This is compounded by low wages and high rents.

It is well known that the steep withdrawal of benefits and entry into taxation (plus for some people, travel to work and child care costs) mean that certain benefit recipients are either no better off or only a tiny bit better off from increasing their hours/income.

This is probably why there is around 200,000 2 parent households where only one parent works part time, why a large percentage of lone parents are in part time employment and so forth.

Personally, I don't like the way your employer has decided that only a third of your working time can be rated as a management role - how is this schism supposed to work? They just sound tight to me.

Many thanks, this is the answer I thought I would get, I hoped that it could be different and the reason I am posting.

Work are a little tight, as it's the assistant manageress role once I complete my manageress duties my wage will revert back to minimum wage. It actually may mean that I work on two different rates in a single day :mad: I will be negotiating these terms during my official meeting with the company, so far I have been offered this role in principle but I need this information before the meeting which I see being held next Monday. The only exception at the moment to the variable wage system is in the absence of the manager, I will become acting manageress and my wage will be the higher rate whatever my duties. I suppose they just don't want to pay two managers.
Thanks for your help and clarification despite it not being what I wanted to hear.

HardToHandle

blondebubbles wrote: »

Sorry if I missed something but why would it only be an extra £20 per week? 9.24 x 7.5 is £69.30.

You've gave your 12/13 and 14/15 income but what do you think your 13/14 income will be? Would need this to calculate your WTC.

When would the promotion start/end? Again needed for calculation.

Oh my goodness, totally confused and overwhelmed by numbers!! Think I was deducting the amount of housing benefit that I will lose (£195pcm)

13/14 income I predict to be £8400 but this is a loose estimate.

Promotion due to begin 13/03/14 and run for a nine month period, it could be longer however.

Thanks for helping me, totally stuck here!!

HardToHandle

Also realising that my earrings will be taxable, they currently aren't.

Do you pay tax on earning above and beyond the £9400 threshold or the whole lot? I believe the threshold rises to £10,000 in April.

cattermole

Another thing to bear in mind, it will give you good experience work wise and look good on your CV for the future.

cattermole

You only pay on the amount above the threshold so if you earn say 10,200 you would only pay tax on 200 which is £20.

HardToHandle

cattermole wrote: »

Another thing to bear in mind, it will give you good experience work wise and look good on your CV for the future.

Absolutely!! It's also a great job to actually do. I have however done this same job before so I have it CV wise but further experience welcome :A

HardToHandle

cattermole wrote: »

You only pay on the amount above the threshold so if you earn say 10,200 you would only pay tax on 200 which is £20.

That seems logical, other things don't but this is. This will obviously be an important consideration in the process.

Thank you for helping me

Suarez

cattermole wrote: »

You only pay on the amount above the threshold so if you earn say 10,200 you would only pay tax on 200 which is £20.

How do you get away with paying 10% tax? :eek:

Oh and don't forget NI contributions on top.

cattermole

Suarez wrote: »

How do you get away with paying 10% tax? :eek:

Oh and don't forget NI contributions on top.

Ooops sorry my mistake yes it would be £40. NI didn't have the calculator to hand.

It is also another cost to the employer OP because they will also have to make NI contributions if you make them.