Cutting Hours at work affecting tax credits ?

ladybelle

Can anyone give me some advice please. I used to work 16 hours and my husband walked out on me last year I struggled to increase to 21 which was one extra day, I had no choice at the time because I could not pay the bills. I was advised to claim DLA as I am disabled, which I got, and as a result got working tax credit with a disability element. I claimed I was working 21 hours. If I now drop back to 16 hours, will I get more tax credit or is the amount you get the same whether you work 16 hours or 30 hours ?
I am struggling to cope with the extra day in work physically, but I am now also paying tax on top which means I lose nearly £20 a month anyway in tax so I may as well cut back to 16 hours anyway but I cant really manage unless the tax credit goes up.
Can anyone advise how the payments for tax credit work ?

[Deleted User]

Your tax credits will only go up if your overall annual income is going to decrease. In this case you would need to work out what your annual income would be. Your tax credits will stay the same unless you work out this annual estimate. Working between 16-29 hours wont affect your claim. Make sure that if you give an estimate of income you dont underestimate it because if you declare more than the estimate you will have been overpaid.

ladybelle

subsoniccoyote wrote: »

Your tax credits will only go up if your overall annual income is going to decrease. In this case you would need to work out what your annual income would be. Your tax credits will stay the same unless you work out this annual estimate. Working between 16-29 hours wont affect your claim. Make sure that if you give an estimate of income you dont underestimate it because if you declare more than the estimate you will have been overpaid.

Thanks for that. They started me off based on me working 16 hours though, as I was awarded it based on the income up to 2007 ? so in a few weeks when I get my new P60 it will be based on my earnings to 2008 ? I rang them to say that the figure would be higher than they had estimated so they adjusted it. So I think if I stay on 21 hours my figures are correct. It's just that now I am paying tax it means I may as well have stayed at 16 hours !