Mumsnet has not checked the qualifications, experience, or professional insurance of anyone posting on Mumsnet and cannot be held responsible for any advice given on the site. Free legal advice is available from a Citizen's Advice Bureau, and the Law Society can supply a list of local solicitors.

ctc and save as you earn company shares

(3 Posts)
Hopingforno2 Thu 10-Oct-13 14:31:05

My partner whom I claim child tax credit with jointly is leaving his current job soon and because of this is getting a refund of shares he had been buying as he earned ans selling free shares, some have went in by bacs the rest will go through his pay to be taxed totalling around £3500 before tax. For those paid by bacs do we declare them to tax credits?They are already part of his before tax earnings that we declare? will this affect my payments?

debtcamel Fri 11-Oct-13 15:55:03

The definition of 'income' for tax credits purposes is much the same as the definition of income for income tax calculation.

So if your partner's employer is correct (nb I have no idea if this is right or not) that some is refunded directly to him by BACs and some is returned "through his pay", my assumption is that only the amount that is returned through his pay is relevant for tax credit calculations.

Whether this will affect your current year's tax credits will depend on how his overall income (plus yours if you are working) has changed from the previous tax years. If it goes up by less than £5,000, this is disregarded and will not change this years tax credits.

So is he moving into a new job? If so how will his earnings change?

Hopingforno2 Sat 12-Oct-13 00:39:46

Thanks debtcamel im on mat leave so we had to give an estimate for this year due to maternity pay being much lower than last years earnings,and oh also changed positions and took a paycut twice now(hence changing jobs). We wont know the amount going through his pay till end of month which is when he starts new job so hopefully only one 15 min wait to speak to an advisor. His new job will initially be less money during training then its targets based and will hopefully rise but shouldn't exceed the initial estimate so just the free shares and now been told as he was in pension scheme for only a year this will also be refunded confused though even including bacs stuff would be under £5000 and around half that for the stuff going through pay.

Sorry for rambling hoping payments aren't too badly affected with me on statutory maternity pay and oh income coming down twice the extra money may well go on trying to make this up(but not quite) appreciate there are people much worse off though and am very thankful.

Join the discussion

Join the discussion

Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.

Register now