to wonder why I would get exactly the same tax credits if i worked 30 hours?

[flowersinherhair]

I have just returned to work after having my 2nd child, and have reduced my hours to 16. I just did the online tax credits calculator with an estimated income if I work 30 hours and the figure I would get is nearly the same as I get now, surely that can't be right? My work income doubles and I still get the same money? Can anyone shed any light on this for me? Thanks.

[Morph2]

have you changed your income level or just the number of hours you work? ( on the calculator i mean not in real life)

[JarethTheGoblinKing]

erm.. childcare cost increase perhaps?

[flowersinherhair]

Have changed number of hours and the income level, have kept childcare costs the same. My job isn't very well paid, but according to this calculator I would be 400 pound a month better off if I did 30 hours. I wondered if it was because you wouldn't be able to claim housing benefit if you're working full time(I don't get a lot anyway). If the calculation was right I would go full time but I'm scared to trust it :D

[FabbyChic]

You can get housing benefit if you work full time, it is pay related so you would only not get it if you earnt over the threshold.

You do get more if you work 30 hours or more on Tax Credits, had not realised it was that much more though.

[flowersinherhair]

Thanks for your answers, I wonder if anyone else will come on who has had the same. Might ring tomorrow and see if they will give me an estimate on the phone.

[Morph2]

hang on, what calculator are you using? Is it one that is taking housing benefits into accounts (the one on hmrc website doesn't do this)

[flowersinherhair]

No the actual hmrc calculator, I just assumed I wouldn't get housing benefit if I worked full time. My income would be going from 6000 to 10 000 if I went full time yet still get the same tax credits.

[debinaboat]

you get an extra premium for working 30 hours but remember your tax credits are based on the previous years income.(which would be lower if you were on mat leave) so next year your tax credits will drop a fair bit (based on this years income.)

[melpomene]

If your income has increased compared to the previous tax year, up to £10,000 of extra income is disregarded when calculating tax credits, see here

This only applies for the first year though so the tax credits are likely to be reduced in the following year.

Plus as others have said, there is a premium for working 30 hours or more.

[ENormaSnob]

There is a bonus for working 30 hours iirc.

Plus it goes off last years earnings so you would notice a difference next year.

[TotemPole]

The Tax Credit place bases it's assessment on your earned income.

Then you have to provide your full income details (TC & Wages) to the housing benefit office for them to reassess.

[gillybean2]

you get about £500 bonus (per year) for 30+ hours. That's probably why