two different jobs at 14 hours and 10 hours

naav

Hi everyone

I was wondering if someone knows the answer to the following:

I'm married with two young children. I work 28 hours. My wife doesn't work. The only benefit either of us receive is child benefit. I'm thinking of reducing my hours down to 14 at the Council and working 10 hours with my father (he'll get me pay-slips). My income before tax will be around £13800.

Would I be eligible for tax credits if I worked those hours (14 and 10) in two different jobs? Thank you.

pmlindyloo

naav wrote: »

Hi everyone

I was wondering if someone knows the answer to the following:

I'm married with two young children. My wife doesn't work. The only benefit either of us receive is child benefit. We have no other source of income. I'm thinking of reducing my hours down to 14 at the Council and working 10 hours with my father (he'll get me pay-slips). My income before tax will be around £13800.

Would I be eligible for tax credits if I worked those hours (14 and 10) in two different jobs? Thank you.

Yes, you can claim tax credits if you work two different jobs. Just add the hours together. You need to work at least 24 hours a week.

See here:

http://www.hmrc.gov.uk/taxcredits/start/claiming/income-hours/work-out-hours.htm

You may also be entitled to some council tax support and housing benefit on this yearly income.

Check using the calculator on https://www.turn2us.org.uk

naav

Thank you very much. Just to clarify. I currently work 28 hours. I've edited my original post. I'm thinking of reducing it to 14 hours and then doing a 10 hour shift at another job. Thank you again.

Have you never made a claim for child tax credit before?

I did several years ago but then stopped.

naav

Hi everyone

Further to my original post: as I'd be halving my hours in my main job from 28 to 14, my salary will be halved from around £27400 to £13700. The 10 hours at my father's work will be neglible in terms of income.

I understand one's current tax credits award is based on the previous year's salary. Would HMRC take into account my new halved salary when telling me how much they'll give me? If so, does anyone know to what extent? Thank you

flea72

In other words, you will only be working 14hrs, but know this means you wont get wtc, so you are fictitiously working 10hrs for your dad, so you meet the eligibility criteria?

flea72

blondebubbles wrote: »

They will use your current year income subject to an income disregard of £2500.

So in your case if your 13/14 income was £27400 and 14/15 income will be £13700, they would base your claim on £16200.

Will the work with your dad be on an employed or self employed basis?

Of course its SE, otherwise he would have to be paid min wage for the job. By going SE, he can pretend to not make a profit from 'working' 10 hrs

sulkisu

naav wrote: »

Hi everyone

Further to my original post: as I'd be halving my hours in my main job from 28 to 14, my salary will be halved from around £27400 to £13700. The 10 hours at my father's work will be neglible in terms of income.

Why give up 14 hours of work at a reasonable salary to replace it with 10 hours work earning a pittance?

naav

Thank you very much everyone for the replies

Will the work with your dad be on an employed or self employed basis?

Employed.

In other words, you will only be working 14hrs, but know this means you wont get wtc, so you are fictitiously working 10hrs for your dad, so you meet the eligibility criteria?

I was looking to be employed by my dad for 10 hours. Sorry, why would I not get Working Tax Credits for these 10 hours?

Of course its SE, otherwise he would have to be paid min wage for the job. By going SE, he can pretend to not make a profit from 'working' 10 hrs

No, I was intending to be employed by my dad.

Thank you

Jobseeeker

He will have to pay the National Minimum Wage then. That may take you over the limit for WTC, use one of the calculators and see.

zagfles

blondebubbles wrote: »

The WTC threshold for a couple is approx £18000.

It's about £16k if working under 30 hours.

OP stated expected income is £13800.

OP the reason why we were querying was because you said the income from working for your dad would be negligible. Your dad will need to pay you at least NMW.

Main job he said was £13700, the job from his Dad would have to pay £3281 (assuming he's over 21), so that'd take him well over £16k, so no WTC.

naav

Hi everyone. Thank you so much for your replies

I had miscalculated :embarasse Thank you for correcting me and making me look again at my figures.

My 14 hours job with my main employer would have got me around £13700; and my 10 hour job at NMW would get me £3281. So total salary before tax for 24 hours is around £16981.

I used the online calculator and this is what I got. Please see below. Is the £503.24 what I may get per month or is it (£503.24/12 = £41.93) monthly? Thank you

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Based on the information you have entered, your household may be entitled to the following tax credits award:- Child Tax Credit £503.24
Childcare element of Working Tax Credit £0.00 Sub total £503.24 Working Tax Credit (less the childcare element of Working Tax Credit) £0.00
Total £503.24

This is the amount your household may be entitled to from 04/03/2014 until 05/04/2014. This result is only an estimate and is based on the information provided assuming you make the claim on 04/03/2014. This means the amount shown may not be your entitlement for the full year.