tax credit change - increase of hours from 25 to 30

manysaver

My 2018/2019 P60 had income of £9725.65, based on 25 hours term-time only.

I get WTC of £48.87/weekly. This seems to roughly represent an income of £9904.78 (based on 41% deduction, single mother, blah blah). Possibly a slightly different number, as I was on monthly payments earlier in the year but changed to weekly? Online, it shows my estimated income as £9978.

Now I've got an offer to increase hours from 25 to 30.

This would increase my salary from £9970.80 (actual at 25 hours - term-time only) to £11,965.71 (actual at 30 hours).

Anyway, that's an increase of ~£1,987.71. Take off 41%, and that's a loss of £814.96. But add in the 30 hour element, and that's £810. So it works out basically the same?

But I don't have to tell them, because it's less than £2,500 different? I presume I can't notify them of my increase to 30 hours to get the 30 hour element, without also having the money deducted for the extra income?

I guess it's probably better to tell them though?

[Deleted User]

You have to tell them about changes in hours. Not to do so will get you in trouble.

ffacoffipawb

manysaver wrote: »

My 2018/2019 P60 had income of £9725.65, based on 25 hours term-time only.

I get WTC of £48.87/weekly. This seems to roughly represent an income of £9904.78 (based on 41% deduction, single mother, blah blah). Possibly a slightly different number, as I was on monthly payments earlier in the year but changed to weekly? Online, it shows my estimated income as £9978.

Now I've got an offer to increase hours from 25 to 30.

This would increase my salary from £9970.80 (actual at 25 hours - term-time only) to £11,965.71 (actual at 30 hours).

Anyway, that's an increase of ~£1,987.71. Take off 41%, and that's a loss of £814.96. But add in the 30 hour element, and that's £810. So it works out basically the same?

But I don't have to tell them, because it's less than £2,500 different? I presume I can't notify them of my increase to 30 hours to get the 30 hour element, without also having the money deducted for the extra income?

I guess it's probably better to tell them though?

Dont the two £800ish figures cancel out meaning you are £1,980 better off on the longer hours? Still with no income tax to pay too.

calcotti

ffacoffipawb wrote: »

Dont the two £800ish figures cancel out meaning you are £1,980 better off on the longer hours?.

I think that’s exactly what OP was saying.

calcotti

https://www.gov.uk/changes-affect-tax-credits

Other changes you should report
Your tax credits are less likely to be affected, for example by building up an overpayment, if you tell HMRC as soon as you:

• have any change in income (report this immediately if it goes up or down by £2,500 or more)
• increase your working hours to 30 hours or more a week (combined if you’re in a couple with children

You should report these changes within 1 month to make sure you get everything you’re entitled to. Payments cannot usually be backdated any further than this.