Going from ft to PT how much will this affect Tax Credits

catgotmytongue

I am considering dropping a day at work as I am struggling personally. I am in a low paid job which is really stressful. I have 3 children one of which has ASD and ADD who has recently come off medication because of the side effects. I am a single parent and suffer from anxiety and depression. A part timer at work told me that tax credits would go up and I should still have a similar amount coming in which would be fantastic. I don't want to change jobs as I love where I am even with the stress load. Has anyone any experience of doing this and is my colleague correct?

nannytone_2

how many hours do you currently do, and what would they be if you dropped a day?

catgotmytongue

Currently 31.25 per week and down to 25. That's what I am paid for but I actually work longer hours but unpaid.

ohreally

catgotmytongue wrote: »

A part timer at work told me that tax credits would go up and I should still have a similar amount coming in which would be fantastic.

Do you find it appropriate that the taxpayer should pick up the tab?

pmlindyloo

ohreally wrote: »

Do you find it appropriate that the taxpayer should pick up the tab?

Not nice. Where is your advice?

OP, you can model your circumstances on the calculator on https://www.entitledto.co.uk

Do be sure to contact all benefit departments about your change of circumstances if you decide to go ahead and reduce your hours.

nannytone_2

you will lose money.

you lose the extra earned income plus the 30 hour element, so even if your tax credits increase a little, you will lose overall

catgotmytongue

Thanks for the constructive help I didn't think about the 30 hour element. It's all greek to me

catgotmytongue

ohreally wrote: »

Do you find it appropriate that the taxpayer should pick up the tab?

Do you find it appropriate to judge a stranger without knowing all the facts?

Caz3121

catgotmytongue wrote: »

A part timer at work told me that tax credits would go up and I should still have a similar amount coming in which would be fantastic.

Due to the disregard and the fact that tax credits work in full tax years you are unlikely to see a decent increase for a while
using simple example (using £7 per hour)
Your current award is based on your income 14/15 and assumes your 15/16 income will not be more than £5k higher or £2.5k lower - if it is within these boundaries then the current award stays the same
award based on £13,750
15/16 income if work current hours £13,750 = award correct no change
if move to PT in Jan on a salary of £9,100
15/16 actual salary would be 9 months of higher + 3 months of lower = £10,806 which is within the disregards so tax credits do not change
for 16/17 the award would be based on the £10,806 salary as your actual salary would be within £2.5k of this
for 17/18 the award would be based on the actual £9,100

catgotmytongue

Thanks so much for your help.

pmlindyloo

You might get an increase in HB though if your income reduces.

If you can manage financially then it is certainly worth considering especially if it means that by reducing your hours you can work 4 days a week rather than 5 days. This extra day would give you a chance to recharge your batteries and perhaps even reduce transport costs.

Reading your previous posts I notice your son is receiving high care rate DLA which suggests that his needs are very demanding. Your children need you to be fit and healthy and if this means cutting hours to reduce your workload and stress then go for it.

Plenty of ideas on the various boards and this site on how to reduce your expenditure so 'go for it' - reduce your hours and become a real MSE. Good luck!