How do I calculate what my tax credits would be following a salary increase

spethmeister

I have been offered a new job, and the salary increase would equate to 14.8% extra.:beer: I need to calculate the change to my tax credits so that I can work out if I would be financially better or worse off if I took the job. Both my childcare and travel costs would increase a fair chunk as the new job is further away, and I would also go from getting a free lunch to having to buy.

I have to decide by the end of today whether to accept the job or not and don't know where else to turn for info on calculating tax credit changes!!

langtone

No effect on 2008-09 Tax credits as these would be based on your 2007-08 taxable earnings

Would reduce from April 2009 onwards by 37p for each £1 extra earnt ( assuming you get child tax credit this reduces to about £25 per month per child then stays there - no more loss until you earnover 50000 per year )

donnalove

i'm sure i read somewhere that the taper is now 39p in the £1?

bestpud

You also need to factor in any long-term employment benefits of taking the new job.

Are you more likely to get future promotions/pay increases for example? Or will it open other employment doors for you?