Help with tax credits and overtime!

EmmaToothill

I've recently started work again after being off ill for 5 years... my contracted hours are 20 hours but we're also expected to do overtime when people are off or short staffed... which ridiculously seems to be every week. My average hours each week are adding up to around 28 even though I've mentioned twice about this effecting my tax credits.

I also get the disability element in tax credits too, as I'm entitled to it due to coming off ESA.

My question is, is this over time going to result in me having loads to pay back especially since I get the disability element so I get more than the normal person would on tax credits.

The whole thing is just stressing me out and I don't know what to do. I don't want my employer to say if I can't do the overtime then I'm out of a job and I don't want to end up having loads to pay back simply because I'm basically being made to do overtime :-(

EmmaToothill

My income between 2014- April 2015 was around 5,200. From 2015 April till now I've only had around 1,200. My expected income from now till April 2016 8,100 - that's based on a 28 hour week and timed it by a 4 week period each month from June till April 2016

beecher2

Could you save the money you get from overtime, and then it is there in case you need to pay it back?

EmmaToothill

Not really, as I need most of the money to live on.

Miroslav

This is a question i'd like answered too as i'm in the same boat as the OP.

Overtime is likely to take you over the threshold, thus next year they'll take 48p in the £ back out of your tax credits for every £1 over the new threshold, so in effect, long term, you will only get 52% of your hourly rate for overtime that you do. Your employer will pay you full rate, but WTC will be reduced by 48% of that rate, over the year I think. So say you earn £10 an hour (I wish) you'd in the long term only see £5.20 of that. Your employer will pay £10, but WTC will claw back £4.80 of your tax credits in next years award.

I'm rubbish at explaining, but I think that is right. The new threshold is £3850, so every £1 over that you earn until April 2016, will dock you 48p of WTC for 16/17 but Disability Element is protected I believe.

Feel free to correct me as i'm keen to know too.

Miroslav

EmmaToothill wrote: »

The whole thing is just stressing me out and I don't know what to do. I don't want my employer to say if I can't do the overtime then I'm out of a job and I don't want to end up having loads to pay back simply because I'm basically being made to do overtime :-(

I feel your pain as it stresses me too.

Disability premium is protected I believe. So the 48% I mention in my previous post, is off the basic element.

You are contracted for 20 hours. Overtime is voluntary unless it says compulsory in your contract. If it is voluntary, they cannot get rid of you for not doing overtime.

Are you in retail, like I am? Retail runs as close to the bone payroll wise as possible, thus the extra hours when needed.

beecher2

EmmaToothill wrote: »

Not really, as I need most of the money to live on.

But surely you're getting extra money from the overtime and haven't budgeted for it, since you don't want it?

Miroslav

blondebubbles wrote: »

This isn't something I've heard about. Where did you read that please?

Someone mentioned it on the day of the budget on here.

They may have been wrong but they seemed like an informed poster.

sheramber

Benefit and Tax Credit rates

The main rates of working age benefits and tax credits will be frozen in cash terms for 4 years from April 2016. Pensioner benefits are excluded from the benefit freeze and will be protected by the ‘triple lock’. Disability benefits, the disability-related elements of tax credits and statutory payments will be uprated in the normal way in line with the Consumer Prices Index; these benefits include: Personal Independence Payment, Attendance Allowance, Disability Living Allowance, Employment and Support Allowance (Support Group only), Maternity Allowance, Statutory Maternity/Paternity Pay and Statutory Sick Pay.[/I

http://www.entitledto.co.uk/help/Benefit_Changes_July_Budget_2015

Miroslav

blondebubbles wrote: »

Even though the disability element is not frozen, it is still affected by the income threshold and tapering rates.

You've not made my night! But thanks for putting me straight .

Does this mean that every pound I earn over £3850, I lose 48p of my tax credits for 15/16?

bloolagoon

Miroslav wrote: »

You've not made my night! But thanks for putting me straight .

Does this mean that every pound I earn over £3850, I lose 48p of my tax credits for 15/16?

Should that not be £3850'PLUS disability element (which isn't frozen)?