New job & tax credits

Oakdene

Hi All


Wondering if you can help...


I've just accepted a new job (woo hoo) which sees my salary jump from £13,800 (4 days a week so £17,250 FTE) to £25,200 (full time). I currently claim both CTC & WTC, which totals £389.24 per 4 weeks, as I am a single father to my daughter who is 12.


I start on the 5th September so obviously my income for this tax year will increase significantly which will reduce my tax credits. A couple of questions:


Will my tax credit award for this year be affected (as its based on previous years income)?


What's the earnings threshold for both WTC & CTC? Will I still be entitled to either/or of them?

Darksparkle

What do you expect to earn in this tax year?

Caz3121

If your income is going to change by over £2.5k this year, the award will be recalculated based on the expected income for the current year (less disregard) they will then deduct the amount you have been paid to date and anything still due for the year should be divided by the remaining months

Oakdene

Thanks both, my income will rise from £13800 to £20450.


Im not expecting to get anything really as its such a large jump

Darksparkle

Assuming no childcare or disabilities your tax credits would change to approx £260 every 4 weeks.

From April 17 it'd be approx £110 every 4 weeks assuming they don't change any of the rates drastically.

Oakdene

Darksparkle wrote: »

Assuming no childcare or disabilities your tax credits would change to approx £260 every 4 weeks.

From April 17 it'd be approx £110 every 4 weeks assuming they don't change any of the rates drastically.

Wow thank you very much.