Tax Credit question

marrbett

Hi, I wondered if someone could work out for me what happens to our tax credits if I get a part time job.
Currently DH works full time and earns £16600. 2 children still at home, 1 aged 16 (in full time ed) and a 13 year old. currently get £46 WTC and £470 CTC every 4 weeks.

If I get this job, I'll earn approx £4300.

Will the tax credits drop be significant?

Many thanks

Darksparkle

If 2015/16 income was £16,600 and 2016/17 will be £20,900 you'll be treated as earning £18,400 as the first £2500 is disregarded when your income increases from one year to the next.

Tax credits will be approx £115 per week.

The full £20,900 would be used from April 2017 and tax credits would be approx £95 per week.

marrbett

Darksparkle wrote: »

If 2015/16 income was £16,600 and 2016/17 will be £20,900 you'll be treated as earning £18,400 as the first £2500 is disregarded when your income increases from one year to the next.

Tax credits will be approx £115 per week.

The full £20,900 would be used from April 2017 and tax credits would be approx £95 per week.

Thanks. if we are only dropping approx £50 per 4 week payment, it's definitely worth me working. Phew. :j

Darksparkle

Given your tax credits will reduce over the next few years anyway with the age of your children, it's always going to be better to try and earn more for yourself.

That and cuts will happen eventually with tax credits although delayed for now.

wolvoman

Darksparkle wrote: »

If 2015/16 income was £16,600 and 2016/17 will be £20,900 you'll be treated as earning £18,400 as the first £2500 is disregarded when your income increases from one year to the next.

Tax credits will be approx £115 per week.

The full £20,900 would be used from April 2017 and tax credits would be approx £95 per week.

Isn't the disregard £5,000 when it's an increase in earnings?

(£2,500 when income drops)

Darksparkle

wolvoman wrote: »

Isn't the disregard £5,000 when it's an increase in earnings?

(£2,500 when income drops)

Not from 2016/17 tax year (6th April 2016).