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Tax Credits and dropping hours

(3 Posts)
Gizmo100 Tue 16-Jun-09 12:19:59

I am trying to work out if I am able to drop from a 5 day week to a 4 days week in my full time job as a Secretary. Before I joined my full time job 9 months ago I was told by the agency I was going to work a 38 hour week. I called the Tax Credit Folk – most of them are lovely but the girl I got seemed to think I was up to something! And also in a mega rush to get me off the phone _ I was only on for 5 minutes! – it transpires I am now work a 35 hour week instead of 38 so I will drop to a 28 hour week job if I only work 4 days. The girl gave me guestimates but was really not that nice on the phone! When I asked her the following she didn’t know I am not sure how this system works but I am only trying to find out how much worse off I will be should I drop a day? Also my daughter has just started receiving the nursery vouchers for over three (albeit she is in nursery 5 days a week) but if I did not have this my fees for nursery would be £800 - £900 a month so not sure if they base their contribution on the large figure or just give you 80% of what is left once the governments contribution has been taken off? Also I should state I will be self employed on the day I am trying to drop and also a day at the weekend (so in effect a 6 day week but I will be lucky if I am earning £40 over both days at the start) but I want to get this side of this sorted out before I tell them I am also self employed.

juicychops Tue 16-Jun-09 12:41:18

i work 16 hours per week and every now and then i work out how much better/worse off i would be working extra days per week.

for every day extra i work (so every 8 hours per week extra) i would be £5 per week better off. so would be working a whole day extra for £5. that is taking into account extra child care, travel, rise in tax credits etc.

so im guessing it would work similar going backwards? maybe £5 less per week?

that is just a guess though!!!

HappyMummyOfOne Tue 16-Jun-09 19:49:39

There is a 30 hour bonus so if you are claiming as a single person so if your employed hours fall below this it may make a big difference. If you are s/e and registered for tax purposes etc then you can declare the actual hours worked on that job as well (as well as the income obviously)

You need to tell them of the nursery vouchers and what your actual childcare costs. They will then work out the percentage you are entitled too. If they spot check your childcare provider it needs to match the money paid.

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