UC and income tax questions

iammumtoone

I have found a permanent job :j

The pay is just less than 10K meaning I won't pay tax, however there will be overtime which will be in my contract I have to do. I don't know what the overtime hours will be, this is dependent on how busy they are at the time. The working of overtime may take me over the 10K tax bracket. How will tax be worked out (as the overtime will not be regular every month), is tax worked out monthly meaning I will just pay tax on the months I go over, or is it yearly meaning if I go over 10K I will pay tax from then on even on the months I don't do overtime?

What do I tell tax credits re overtime, do I have to ring them every month to inform them if I have worked overtime?

I am worried when UC comes in as I need childcare and I read somewhere (think it was on here) that the childcare element tax credit will be increased but only available to tax payers. Is this correct? will I have to pay the whole of my childcare costs if I don't pay tax?

Thanks

iammumtoone

Thanks I will over estimate, I certainly don't want an overpayment next year.

Am I right in as long as my estimate is £2,500 less than this years wage they will re-calculate my award?

MCGONIS

iammumtoone wrote: »

I have found a permanent job :j

The pay is just less than 10K meaning I won't pay tax, however there will be overtime which will be in my contract I have to do. I don't know what the overtime hours will be, this is dependent on how busy they are at the time. The working of overtime may take me over the 10K tax bracket. How will tax be worked out (as the overtime will not be regular every month), is tax worked out monthly meaning I will just pay tax on the months I go over, or is it yearly meaning if I go over 10K I will pay tax from then on even on the months I don't do overtime?

What do I tell tax credits re overtime, do I have to ring them every month to inform them if I have worked overtime?

I am worried when UC comes in as I need childcare and I read somewhere (think it was on here) that the childcare element tax credit will be increased but only available to tax payers. Is this correct? will I have to pay the whole of my childcare costs if I don't pay tax?

Thanks

Well done and good luck with the new job.

Just a quick question though, I thought if you got Universal Credit then that replaced Tax Credits? Is that not the case?

Thanks!

Icequeen99

MCGONIS wrote: »

Well done and good luck with the new job.

Just a quick question though, I thought if you got Universal Credit then that replaced Tax Credits? Is that not the case?

Thanks!

As BB says, UC is replacing tax credits but gradually and it depends where you live and your circumstances. Only a small number of people are affected at the moment.

The childcare point you mentioned - that is what was proposed but actually they decided to go differently and give everyone 85% of childcare costs from 2016.

IQ

iammumtoone

I dont know when UC credit will hit my area I believe it is a long while off yet. However it will happen and I want to know what my situation will be then well before the time. If I have an income drop due to it, thats fine I will have to live within it like everyone else BUT I want to be prepared and forewarned, I don't want to find out a few months before hand that I will suddenly have x amount less to live on. I know anything could happen within that time but I am a worrier and like to know whats happening in advance (especially where money and keeping a roof over our heads are concerned)