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

HardToHandle

blondebubbles wrote: »

Well you won't need to worry about this year if it'll only be £8400.

For 14/15 the personal allowance is £10000. This means you only pay tax on any amount over £10000. So if your income is £12500, you'll pay 20% on £2500 which is £500. Tax is worked out over the year so you'd prob pay about £10 per week.

NIC is a little different, that's worked out on each pay period so on your normal job you don't earn enough to pay NIC but in the weeks you are promoted you'll prob pay about £6.

You'll be looking at a take home pay of about £195 per week compared to £142 you get now.

It's Very kind of you to do these calculations for me.

At the moment I am looking at a break even situation with wage vs housing benefit. I will get 30 hours element of wtc on top which is equal to £15 per week.

Am I being unreasonable to think that it just isn't worth it?? I'm not sure I can accept the impact on our lives for such a small financial gain. I already work hard and my workload will really increase.
I do want to do it but I would have to da a killer 7pm-1am 8am-7pm consecutive shift once per week to make this work :eek:

HardToHandle

blondebubbles wrote: »

As for your working tax credits, your claim for this year will be based on your 12/13 income as you haven't increased by more than £5000.

Your payments should increase when you start working 30 hours from £74 to £89 per week (estimated)

Child tax would remain as is and should be about £62 per week.

From 14/15 your tax credits would be based on your 13/14 income (estimated on £8400). That'd give you £75 WTC and £63 CTC. When you stop the extra hours, WTC will decrease to £59.85. CTC won't change.

Please note all figures are estimates only.

Thank you again x

cattermole

I agree with Bubbles

But I do know from personal experience it can be very frustrating for employers when good staff are unable to work extra hours because of loosing benefits.

So it's a question of weighing up the pros and cons and deciding what is best for you and your child as blondebubbles says.

You not being unreasonable and it isn't your fault that there is this anomaly in the system.

HardToHandle

To be honest, no, I'm not bothered about progressing in this company. There is little opportunity for progression and I feel I have gained all the skills that I am going to gain.
I have a lot to consider now.
I plan to return to education but not sure at this point what I want to do. I only know that if I take the promotion it will only be in the short term, once dd starts school I need to be here for her more. I work in the evenings, she wants me at home when she starts school. Thus, why I plan to return to education.
At least I now know that my calculations were fairly accurate and I can base my decision on the facts I have. Whether or not I take the promotion, my current role is adequate financially and will not be affected by my decision.
Who knows, they might offer me more money! :rotfl:

HardToHandle

Pros and cons.... What a fab idea!! I shall make a list

BigAunty

HardToHandle wrote: »

Am I being unreasonable to think that it just isn't worth it?? I'm not sure I can accept the impact on our lives for such a small financial gain. :eek:

No, you are not being unreasonable, just being human. Humans respond to incentives and are less motivated when they get little return. Do what's best for you. It's not your problem that your company has poor cash flow or poor people management.

Keep your eye out for the Universal Credit system as that's supposed to iron out kinks that disincentivise people from going into employment or working longer hours.

If your ex isn't contributing towards child support, go to the child support board. Any child maintenance won't affect your benefits.

cattermole

BigAunty wrote: »

Do what's best for you. It's not your problem that your company has poor cash flow or poor people management.

Good advice from BigAunty OP and

employers have taken advantage of the system because it benefits them financially particularly when it comes to NI contributions.

2 people x 16 hours a week on NMW means no NI contributions for them as well.

1 person working 32 hours or full time means they and the employee have to pay it.

HardToHandle

BigAunty wrote: »

No, you are not being unreasonable, just being human. Humans respond to incentives and are less motivated when they get little return. Do what's best for you. It's not your problem that your company has poor cash flow or poor people management.

Keep your eye out for the Universal Credit system as that's supposed to iron out kinks that disincentivise people from going into employment or working longer hours.

If your ex isn't contributing towards child support, go to the child support board. Any child maintenance won't affect your benefits.

Thank you, I want to be a responsible member of society but I don't want to work for nothing. I feel supported in this now.

Universal credit is bedtime reading for tonight, I will be interested to see how this may affect me.

I apologise, I didn't include child maintenance payments as they don't affect this current dilemma. He does pay, but thanks for flagging that up to be extra helpful. You have been very kind and helpful

HardToHandle

cattermole wrote: »

Good advice from BigAunty OP and

employers have taken advantage of the system because it benefits them financially particularly when it comes to NI contributions.

2 people x 16 hours a week on NMW means no NI contributions for them as well.

1 person working 32 hours or full time means they and the employee have to pay it.

I didn't know this! I thought it was so we had more people on the payroll to cover holidays/sickness.
Interesting information..... Thanks

BigAunty

HardToHandle wrote: »

Thank you, I want to be a responsible member of society but I don't want to work for nothing. I feel supported in this now.

You must have caught the regular board posters in a good mood.

Generally people coming here with 'is it worth working' posts get a total kicking as some forum members seem to think working for nowt is good for the soul or something.

Ignore any negative posts that you see here.

This forum is haunted by a regular troll with mental health issues who turns every thread into one about themselves, gloating about the huge benefits they pretend they receive and posting fake threads with complex fake scenarios.